To add to this sloppy post, at the end of 2017 the FDV parent entity had only $0.35m in cash and a deficit of almost $0.2m between payables and receivables. Every one of the holdings was making a loss and of the $14.4m equity raising in May/June 2018, only $3m was retained by the parent - the bulk was to maintain or increase its stakes in the holdings.
Zameen and 2-3 other businesse
s are now self sustaining and oughtn't need more capital, and it would seem illogical to dilute the aggregate holdings to either prop up the weaker ones or make further speculative investments (hats off to the guy who got them to buy into a Congolese used car portal).
If there is a need for cash preservation I'd guess the strategy now would be:
- cut off support to more of the losers
- wait for Zameen to start paying a dividend
(20min delay)