time to research cer

Over the last few months several HC posters have requested my views on CER. Until the last few days while on holidays I had tended to ignore CER, because CNP presented greater leverage opportunity to the retail assets. But assuming CNP finance extension proceeds as planned, CER present a better exposure to the retail assets now because there will be no dilution of its assets. The refinancing of major shareholder CNP would be very positive for CER over the next few years. CNP will be looking to receive distributions from CER to solve its financing & debt levels & CER would benefit greatly from these distributions. CER at current prices not only offers excellent exposure to heavy discounted retail assets combined with future distributions that could create capital gains that could be multiples of the current CER price.
Assuming extension of CNP proceeds, the biggest risk could be a corporate play for CER at prices that don’t represent fair value of its assets. Given the large CNP & Orbis shareholdings hopefully all smaller CER shareholders will benefit over the next few years.
Given I am on holidays & with limited internet access, unfortunately I will not be able to reply to further posts on CER for a few days.
Friday’s turnover & price movement in CER, also tends to indicate someone may be also having a serious look at CER as undervalued asset play.
Half yearly results may be disappointing but CER is really about undervalued retail assets.
Long term value investors could enjoy some research on CER in the light of what is happening in CNP.
Regards
Buffett