Two months ago I described Sky Solar as one of the hairiest stocks I bought in recent times, and it quickly turned into a roller coaster ride that did not disappoint. Even though it was somewhat expected, Hudson Capital tried its best to derail the deal, and managed to get a court order in the Cayman Islands to freeze assets of Sky Solar. The market didn’t take this development very well, and the price plummeted from almost $6/share (the merger price) to a low of $2.74 in the course of the next two weeks. I wish I could say that I bought a truckload of shares at the bottom, but I did not. Not all my trading was terrible though. When the company announced a few days later that the court order in the Cayman Islands was completely discharged I managed to snap up a couple of shares at a great price.
Today Sky Solar announced that the tender offer was successfully completed, realizing a return of 15.4% in two months time (not counting the shares I bought halfway at much lower prices). The cash has not yet hit my account, but that should happen in the next few days. For those who didn’t tender, the story is not yet over. Because of ongoing litigation from Hudson Capital, the merger to squeeze out the remaining shareholders cannot be effectuated. No big deal, because for some reason the stock is now actually trading slightly above the merger price.
Author is technically still long SKYS