Ann: SRV Middle East Update, page-6

Thanks for your reply…I’m reassured that another is also interpreting it the way I saw it.

In response to your own question, I would think the market would anticipate the split at some point and re-rate the stock accordingly. Perhaps this already happened a bit the day after the AGM, when it jumped 10%. But I think a lot of that was in response to the positive update for 23/24. You are right, “at least 18 months” is quite a while, and a more fulsome re-rating may require any such restructure to be on firmer ground.

For my own part, I haven’t added very recently although I was mightily tempted to. I’d already moved from 15,000 to 20,000 with two purchases in the last 12 months, and felt “I’ve got enough already” in a stock which even Shaws still labels “high risk”. But with a split now possibly on the cards, I’m very tempted to add again now, so as to ensure I wind up with a decent holding in each of the two entities post split. Even after the recent rise, the share price still seems quite compelling to me. I’d thought it compelling before last week’s positive update and talk of a split!

Anyway, quite an exciting development. Let’s see what happens from here!