2 x Multiple Opportunity in BCBHF / CIHL, US Court Arbitration Award Enforcement

[writser]

Shares have been on a great run, up another ~60% since the last post. Using the take-over of a cashbox in Bermuda, insiders effectively invested ~13.5m gbp in the company a few weeks ago at market prices (then ~0.38 gbp). They are using this money to take over a competitor in Belize, Scotiabank, for about book value or ~$30m. Shares are still looking cheap, but I'm not as enthusiastic as Skanjete. I have a hard time seeing this trade above book. The insider transaction also seems a bit dubious, taking advantage of the depressed share price on LSE. The takeover makes me think a going-private transaction is not imminent either. Minority holders are basically at the mercy of lord Ashcroft. I had a small position which I sold after the run-up this week. Probably way too soon!

 

 

Still kicking myself for not having looked at this in 2019 or earlier. Might get back in at some point.

 

Cool thread.

[skanjete]

Writser,

 

I recently sold out as well.

 

The Belize economy is very much depending on tourism, and the current Covid 19 crisis will no doubt cause a lot of trouble.

 

I can't really assess whether the take-over from Scotiabank is a transaction out of strength or weakness.

In 2009 they used a similar tactic with a cashbox in Bermuda, (which offered a great merger workout opportunity at the time), but that was more out of survival than anything else.