Last year Tejoori announced that it would liquidate. With the stock trading around $0.50/share while I estimated a NAV/share around $0.62/share I thought it was a good bet. In the end that estimate proved a tiny bit too optimistic since I got paid $0.59892/share, but I guess an unfavorable currency exchange rate is partly to blame. The liquidation distribution was paid in United Arab Emirates Dirham, and I have seen other shareholders reporting receiving a slightly higher payout in US dollars. But I’m happy to have gotten my money…
Because the company cancelled their electronic trading facility before making the liquidation distribution receiving the liquidation payout was a bit of a messy process. The depository that my broker used to keep my shares had to communicate with the liquidators in the British Virgin Islands to make sure that the money got transferred manually from Abu Dhabi to their bank account. Since that’s probably a very exceptional thing to happen, I can see how that can go wrong somewhere along the lines if someone, somewhere doesn’t fill-in the right paperwork. I like deals like this where you can’t be totally sure that everything will work out because of the paperwork, although in this case it sucked that you couldn’t do anything about that yourself. But it’s a risk that is totally uncorrelated with the market, and although at some point I will probably participate in something that will not workout, I think that as long as you get paid a big spread the overall end-result will be more than satisfactory. This one certainly was!
Disclosure
No position in Tejoori anymore
