Investment firm PME Africa Infrastructure is winding itself up following five years of disappointing performance.
The group, which invested in telecommunications in Tanzania and Uganda, found competition in the market too hot to handle and so has now exited the business.
The remaining assets are 12 locomotives in South Africa which are mainly leased to the resources industry. It also owns some commercial premises in Dar-es-Salaam, Tanzania.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The idea is to buy back 30% of the outstanding shares using spare cash of around $13m. That makes each share worth around $0.4, the same as the net asset value per share at the end of June.
The next phase will be to flog the locomotives and buy shareholders' remaining stocks with the proceeds.
PME has decided to manage the winding up process itself instead of using a third party manager, as a result of which the Chairman, David von Simson, and two directors, Lawrence Kearns and Paul Macdonald, will see their salaries increased from £30-35,000 to £75,000.
The stock rose 190% to 0.31p by 10:59. Since 2007 the stock has fallen in value by 71%.
BS
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
