African Bank shares are worth 5 cents Bloomberg, Business Report, Johannesburg, 15 August 2014 African Bank Investments Ltd, suspended from Johannesburg's stock exchange following its collapse last week, could be traded over the counter by hedge funds left with open short positions, according to 36ONE Asset Management. "We'd be happy to buy current ordinary shares over the counter at 5 cents - they're not worth zero," Jean Pierre Verster of Johannesburg-based 36ONE, which had an open short position on African Bank when the shares ended trading on August 8, said by phone today. "We haven't actively tried to purchase stock. It's too soon and people are way too optimistic about the 'good' bank." Abil, as it's known, collapsed last week after the lender said losses were mounting and it needed to raise at least 8.5 billion rand. The South African Reserve Bank put the company into administration on August 10 and divided it into a so-called "good" bank and a "bad" one, arranging for 10 billion rand in capital for the positive side. Shares and bonds were suspended the next day with the curator of the good bank saying shareholders may yet get something back. "With junior debt holders and preference shareholders, there are 5 billion rand of other people in line ahead of the ordinary shareholders," Verster said. "We've taken the view that there's very little value in the good bank. On our analysis the new bank will have 36 billion rand in liabilities and 26 billion rand in assets. That hole will be hard to fill." [more] From: http://www.iol.co.za/business/companies/african-bank-shares-are-worth-5-cent s-1.1736310#.U_A4HPmSyD8 -- -- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] . --- You received this message because you are subscribed to the Google Groups "YCLSA Discussion Forum" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
