Cambria Africa puzzled at discount, mulls asset sale

Zimbabwe focused investment firm, Cambria Africa, says it is considering a potential asset sale and share buyback as its stock price continues to lag its tangible asset value.

Revenues in the 12 months to the end of August were $12.9m, up 35% on the prior year while gross profit was $6.9m, also up 35%.

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All of the main businesses appear to be doing well. Cambria says the share price is currently at a 70% discount to tangible asset value, and adds: "Were this position to continue the board may review strategic alternatives for one or more of its investments to unlock (and/or make more apparent) some of the value built-up within its underlying investments. If this review were undertaken it may include, but would not be limited to, a potential sale of certain assets.

"In this context, the company's board may consider targeted buybacks of its own shares were a realisation of any assets completed."

The market was unimpressed, the stock fell 4.55% in morning trading and has now lost 38% of its value since February.

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