Tejoori liquidation finally finished

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

18 thoughts on “Tejoori liquidation finally finished

  1. Vincent

    I bought my shares through DeGiro and have not received anything yet. Latest response (today) was they didn’t hear of any liquidation through CREST yet and that they were waiting for it. I replied that this liquidation is not going through that facility as you mention in the article. Because they don’t seem to be aware of this I’m seriously worried about getting the distribution at all.

    Reply
    1. Alpha Vulture Post author

      Sounds like it’s amateur hour at the giro, but can’t say I’m surprised… would have thought twice before buying this stock with them. But I don’t know who they use as depository? Might be a more capable third party who will figure this out on their own (eventually…)

      Reply
  2. JG

    I bought a very tiny position to ‘test’ DeGiro.

    So far the results are not impressive…the custodian is capable, so I hope all will be all right in the end for people involved in a more significant way then myself.

    Reply
  3. Uros

    I also bought a position via DeGiro and sent them an email in February about the liquidation and attached the Notice of General Meeting. What is the worst case scenario? A delay in payment or worse?

    Reply
  4. Vincent

    I also sent DeGiro information and asked about the status several times during the process. From what I learned their custodian is Morgan Stanley and they communicate with the liquidators. Anyway I hope the outcome is just a delay.

    Reply
    1. Maarten

      I am also still waiting for the distribution. I called them June 6th and received the following answer (will give them another call tomorrow):


      De bewaarplaats is inmiddels contact gekomen met de Liquidators. Onderstaand is de reactie die ik vanmiddag heb ontvangen. Vooralsnog komt er in ieder geval wat schot in de zaak, maar helaas nog niet de antwoorden waar ik en zeker u op hopen. Er is contact met de Liquidators en ik zal zelf op dagbasis onze bewaarsplaats sturen richting een spoedige uitbetaling / oplossing. Helaas ben ik niet bij machte om het proces te versnellen maar kan ik in ieder geval meer druk uitoefenen nu er contact is met de Liquidators. Ik hoop u spoedig van een positief antwoord te kunnen voorzien.
      ————————————-
      The corporate action team have received a reply from their contact at the Liquidator this morning however they have not confirmed all of the required details.

      They will continue to chase today for confirmation and for an ETA on when this can be paid.
      ————————————-
      Zodra ik meer weet kom ik hier uiteraard direct bij u op terug en nogmaals excuses voor het ongemak.

      Wij hopen u hiermee voldoende te hebben geïnformeerd.

      Mocht u nog andere vragen hebben dan horen wij dat graag van u.

      Reply
        1. Maarten

          Good news for everybody who bought shares via DeGiro:

          Dit is de laatste update die ik vanochtend heb ontvangen. Ik zal morgenochtend direct navragen of het geld is ontvangen en of wij dit dan direct kunnen uitbetalen op uw rekening.
          —————————————————
          We have been told we will receive the funds before the end of this week.

          The contact is located in Dubai and are hoping to receive the funds tomorrow, if not it will be Monday before we receive any update.

          We will continue to follow up for the funds , hopefully this is received tomorrow.
          —————————————————
          Wij hopen u hiermee voldoende te hebben geïnformeerd.

          Mocht u nog andere vragen hebben dan horen wij dat graag van u.

          Reply
  5. Eldar Brodski

    You note that you have seen other shareholders reporting that they received a slightly higher payout in USD. Are these reports public, i.e. twitter or a blog? I ask because I received ~$0.59 per share, was told by my broker I was not charged fees, and would like to show these to my broker.

    Reply
    1. Alpha Vulture Post author

      No, got some mails.

      But the payout should be very close to $0.60/share, but a bit above it if it’s really without fees (depending on the day/time the money was received/converted from AED). The liquidation distribution was 2.222244AED/share, and that should currently be equal to US$0.605/share (so in my case it looks a lot like there was a 1% conversion fee…).

      Reply
  6. Eldar Brodski

    where can I find evidence that the liquidation distribution was 2.222244 AED/share?

    On what date was this distribution received by the shareholder of record?

    Reply
    1. Alpha Vulture Post author

      I received this info directly from my broker when the distribution was announced by the liquidators (23 April). Given the mechanics of the distribution it seems like everybody got it at different times…

      Reply
  7. Eldar Brodski

    Thanks…my broker charged me 255bps to convert the dividend to USD without disclosing the charge

    Reply
    1. Alpha Vulture Post author

      That’s a pretty outrageous currency conversion fee! I thought the 1% I (probably – of course you don’t see it anywhere in any statement…) paid was already at the upper end of the reasonable range…

      Reply
      1. German reader

        Talk about conversion fee. I received EUR 0.383054 per share. Luckily I sold most of my shares before they delisted.

        Reply

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