McVicar industries is a specialty chemical company with operations in China.
For those of you that are still reading, the story gets worse before it gets better. In 2013, the companies Hongbo facility was "illegally occupied by the factory management and staff," according to the company's press release. The company sold that operation back to the entity it originally purchased it from, and has announced a plan of amalgamation with its largest shareholder. The amalgamation will deliver proceeds of $0.50 to shareholders, and the most recent trading price is $0.48, for a 4.16% return on the trade if the deal is completed.
The independent valuation prepared at the board's behest concludes that the transaction is not fair to shareholders and that the company is worth $0.70 to $0.76 per share. I think it is unlikely shareholders will put up much of a fuss, and will generally be happy to get out of a Chinese micro-cap at a premium of >100% to the pre-deal price of the company.
The special meeting to approve the transaction is scheduled for the end of April, so a completed deal would be an attractive annualized return.
Disclosure: No position, may change at any time
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