Webster board's authority to deal in Tassal Shares ceases on 24 March 2010. It will be interesting to see if anything transpires in the next few days.
In response to a question about TGR holding at the last AGM, the board indicated that they didnt consider themselves an investment holding company. They were considering options for how best to deal with the TGR stake including distributing the holding to share holders.
The market price of TGR and WBAs own debt situation would be complicating the issue.
Personally I believe that TGR shares are worth more than the $1.56 which is the minimum price the board is allowed to sell. I would prefer the TGR holding to be distributed to share holders. The debt misbalance following the distribution could be corrected by a simultaneous rights issue.
By my calculations based on last years financial statements TGR shares at $1.56 are worth 57cents (after tax) per WBA share. WBA had gross debt of 36 cents per share. If the board does sell the stake than WBA should be able to return 21 cents to shareholders and be completely debt free.
Is WBAs remaining business worth 22 cents per share? I would like to discuss this with anybody that has a good understanding of the walnut industry. I think there is potential.
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