Ciboney Group‘s shareholders are in for a treat with a capital distribution of 34 cents per share to be paid in March. The funds come from cash generated from the sale of land previously owned by the company.
Having struggled for years with operating losses, resulting from poor management decisions a sizable portion of their asset was wiped out as they ploughed through cash funds which stood at $41 million in 2011. By November last year cash held was less than $1 million.
The sale of property located in Westmoreland netted $226 million resulted in the net value moving from a negative value of $50 million to a positive position of $132 million. The distribution will cost $185 million.
The distribution will be paid on March 9 to shareholders on record at the close of business on February 16. The company’s next Annual General Meeting will be held on April 10 at which, to have this ratified. No doubt the future of the company will take up quite a bit of time at that meeting. After the stock starts trading, excluding the right to the distribution the price should fall back sharply, thereafter it will depend on what future the company could have.
For the six months to November, Ciboney reported a loss of $2.55 million and for the fiscal year to May a loss of $5.2 million was incurred after taxation charge of $180,000.
Big payday for Ciboney’s shareholders
February 5, 2018 by
