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Filthy 40 China Africa: restructuring EGM Circular released, correction and apology, but value at the current price?

By Nigel Somerville, the Deputy Sheriff of AIM | Sunday 27 November 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


The details have been announced: out of cash ShareProphets AIM-China Filthy Forty play China Africa resources (CAF) is proposing to divest its existing asset to its shareholders by way of an in specie special dividend (apparently valued at 1.75p per share) to leave a clean (and rather empty) cash shell. New money is coming in at just 2.17p a share, with a new board, a new business model and a new set of advisers. Against an IPO price of 40p a share back in 2011, China Africa has been a stunningly poor company. Things look set to change for the better, although the maths suggests that the current share price is still well ahead of events. 


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