Forterra Trust (formerly: Treasury China Trust)

[GreedandFear]

My premise is that the shares are trading at a significant discount to NAV due mainly to the problems of the previous manager / controlling shareholder. A major real estate company has now bought 29% of the shares at 2.98 a share, presumably, because they see value at that level. Of course, they may be wrong but hopefully they will cause more interest in the shares. I don't see Nan Fung making such a size able investment just to get control of the management company and associated fees.

Why are they not making a General Offer ? That is a good question. They certainly have the financial resources to do so.

[KopiKat]

I suppose the market is being cautious till there're more certainty that the conditions are going to be satisfied.. at the Irish Courts? Similarly, I suppose Nan Fung will only make their moves, if any, when they finally lay their hands on the actual shares.. 31-Aug is the deadline to watch, likely earlier?

[GreedandFear]

A good report. Don't know this research house but they describe themselves as "Europe's largest independent research house".
http://www.edisoninvestmentresearch.com/...erra-Trust

[KopiKat]

I suppose the market is being cautious till there're more certainty that the conditions are going to be satisfied.. at the Irish Courts? Similarly, I suppose Nan Fung will only make their moves, if any, when they finally lay their hands on the actual shares.. 31-Aug is the deadline to watch, likely earlier?

Update on Irish Court thingy. Extracts,

Following the hearing, the Irish High Court reserved its decision until 11.00am (Irish time) on 31 July 2013.

[GreedandFear]

I suppose the market is being cautious till there're more certainty that the conditions are going to be satisfied.. at the Irish Courts? Similarly, I suppose Nan Fung will only make their moves, if any, when they finally lay their hands on the actual shares.. 31-Aug is the deadline to watch, likely earlier?

Update on Irish Court thingy. Extracts,

Following the hearing, the Irish High Court reserved its decision until 11.00am (Irish time) on 31 July 2013.

The courts are always a risk but given that NAMA and the prosecutors support the deal, I would see the risk of the court tweaking the settlement as opposed to rdjecting it outright. We shall see on Wednesday....

Vested.

[opmi]

Prosecutors? You mean liquidators?

[GreedandFear]

Prosecutors? You mean liquidators?

Apologies - yes liquidators. Confusion arose because Richard Barrett has been accused of potential fraud. See link

http://www.independent.ie/irish-news/cou...51805.html

[Boon]

Wed, Jul 31, 2013, 16:16

A High Court judge has approved a complex settlement of an action brought by Nama and others against Treasury Holdings’ co-founders Richard Barrett and John Ronan over a controversial €20 million transaction, known as the TAIL transaction, involving the alleged transfer of shares out of the group at a significant undervalue.......................................

http://www.irishtimes.com/business/secto...-1.1480787

[KopiKat]

Wed, Jul 31, 2013, 16:16

A High Court judge has approved a complex settlement of an action brought by Nama and others against Treasury Holdings’ co-founders Richard Barrett and John Ronan over a controversial €20 million transaction, known as the TAIL transaction, involving the alleged transfer of shares out of the group at a significant undervalue.......................................

http://www.irishtimes.com/business/secto...-1.1480787

Looks like there were motivation for this court judgement to clear so that the Nan Fung deal can proceed. Extracts,

Mr McAteer had also said the fact of the litigation would create uncertainty around the value of the shares involved. Under the settlement, the shares were valued at 2.98 Singaporean dollars despite currently trading at between 1.60-1.70 Singaporean dollars and the settlement involved the liquidation getting 60 per cent of the 2.98 value.

[opmi]

Thanks, boon. Trying to look for that news since 6pm.