Having talked about shareholder activism a couple of days back (link), Jun Hao of The Asia Report approached us to have his letter against Zagro Asia to be shared on our site.
Zagro Asia released a formal proposal to seek the voluntary delisting of the Company which I think greatly undervalues the company. I have sent an open letter to company reflecting my stance that the offer should be revised upwards to reflect the true intrinsic value of the company. The original letter can be found here.
The proposed voluntary delisting at 30 cents came as a surprise to us. It deeply undervalues what is an intrinsically high quality business.
In our opinion, a conservative appraisal of Zagro Asia would yield a valuation of at least 35 – 40 cents.
First off, let me congratulate management for running a tight ship. For ten years, you have grown the earnings ...
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