Ashmore Global Opportunities: another wind-down opportunity?

Share On Facebook

Ashmore Global Opportunities (AGOL) announced on 1st February 2013 that they are going into wind-down mode.  The latest Net Asset Value is given as £7.82 vs a share price of £5.75.   If all goes to plan that’s 36% in the bag for investors.

The vote has still to be passed but assuming it is, AGOL will distribute about $60m shortly after 31 March 2013 at NAV.  What that means is that they will buy back some of our shares for a 36% uplift.

They go on to say that  The Board will make further quarterly distributions by way of pro rata redemptions of shares based on the Company’s NAV  on 30 June 2013, 30 September 2013, 31 December 2013 and quarterly thereafter, provided the Company holds cash or cash equivalent proceeds at such quarter end of at least $10 million. The Board may also make distributions by way of dividends or otherwise return capital to shareholders.

They clarify further:  after the distribution in March, $75 million will be realised during the following six months and they expect 50% of the current NAV will be available for distribution by 31 December 2014. The remaining portfolio is expected to be realised beyond this date and may take three further years or longer.

The good news is that this will be an orderly wind-down and not a fire-side sale.  The only unknown is what price will be realised for their assets.

A recent note by Overseas Asset Management  (PDF)  suggests  NAV over 3-4 years might be as high as $12.  Who knows, there is no way for us to know what price will be achieved (see here for assets) but with a return expected as soon as March this year, this looks like a like a reasonable upside play with the only downside being a capitulation in world markets causing a big fall in NAV.

Disclosure: at the time of writing the author holds AGOL

Susan Marmor has been trading her ISA and SIPP full time for 7 years. She has made money every year, including 2008. She believes that making money is about picking the right shares at the right time and using sound money management techniques to manage risk.

For her trading she uses a combination of sound fundamental data and technical analysis (which involves using price charts and some of the fancy bits and pieces that go with them). She runs the occasional seminar to show people what she does and how she does it.

Disclaimer:

Please keep in mind that all comments made by Susan Marmor are for educational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, options, futures or any other financial instrument of any kind. Consult with your investment advisor before making an investment decision regarding any securities mentioned herein. Susan Marmor assumes no responsibility for your trading and investment results. Susan Marmor does not warrant completeness or accuracy for any observations made herein, or warrant any results from the use of the information.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:40 V: D:20170926 10:45:35