Good questions. I'd assume that HML would continue to hold other listed investments, eg: single stocks, which BHD doesn't seem to be doing - so BHD would still be narrower in that regard. HML would certainly be holding a chunk of JBL if this deal goes through.
The very important thing to think about with this JBFG sale is that the most recent proposal was for HML to be paid in JBL shares and options. So we would still have a stake in JBFG, but via the listed vehicle of JBL which currently trades with extremely low liquidity on the NSX (with a proposal to move it to the ASX at some point).
The valuation problem would be 'solved' because it would be mark-to-market based on JBL's share price, but we wouldn't really have exited the investment as such. And somehow I don't envision HML ever selling its stake in JBL.
Still, having a stake in the manager that we're paying fees to (and collecting fees from BHD) may not be a bad thing. Especially *if* they manage to salvage some reputation and get some of those new funds listed too.
HML Price at posting:
$1.99 Sentiment: Hold Disclosure: Held
