ICS announced that it has entered into an agreement to sell its operating business MBC for $22 million. This means if it passes it will leave ICS with liquid assets of roughly $2.26 per share.
It is interesting that there was essentially no premium paid for the business compared the current share price. Having invested in this business believing that it was "undervalued" it seems a raw deal for shareholders.
Possible outcomes from here:
- Sale is passed (likely) --> cash returned to shareholders with some friction for probably ~$2.20 or ~5% return from here bit less after tax as not all my buys were >1yr ago
- Sale is rejected (unlikely) --> Higher offer is proffered say $2.50 /share equivilent ~ 15% return
- Sale is rejected (unlikely) --> Continue to hold business I was happy holding previously
I could just sell now if I felt there were better opportunities.
If there is a random sell off making the above numbers more attractive I could buy more.
Overall I think I will hold for now as the downside seems pretty limited can't say my conviction is particularly high.