Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Squeeze me out

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I am a minority shareholder in several companies and the companies are doing just that to me.

Bought a high quality French small cap for the Fund and investors 2-3 weeks back which was a classic 15/15 company (growth / PE multiple) with 65% ROE. Company is AZAE or A2Micile https://www.azae.com/ The company has no fixed costs, but it offers baby sitting, gardening, handyman, domestic help, support for older folks type of services for a commission to find the right personnel.

This type of market is quite fragmented and a good brand/reputed/reliable company can command 10-20% premium for its services.

I noticed that it had been building good brand for itself in France.

 

French / European regulatory norms for delisting are called Squeeze Outs. French minority squeeze outs typically happen at 95% holding, https://www.ibanet.org/Document/Default.aspx?DocumentUid=50A38E63-2CA7-4CA4-8BDC-8F87AFA5CAF7

I had no fore knowledge of this happening but mildly unpleasant to have to let go of a wonderful company that was still under the radar at 40 Million Euro market cap.

Squeeze Out was announced today, 7th of Feb 2018, https://www.reuters.com/finance/stocks/ALA2M.PA/key-developments/article/3759675

Oh well, I am a fair weather friend of companies, so should not complain when I make money on them, no matter how short the profitable friendship.

https://finance.google.com/finance?q=EPA%3AALA2M

ala2m

 

Disclosure: Sold positions discussed. Views are personal notions and do not represent any organisation or company. Investment in stock market can (and many a times do) result in loss of principal capital.

http://www.elevendimension-funds.com

Written by amitdipsite

February 7, 2018 at 11:29 am

Posted in Uncategorized

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