how much for a listed company shell

CDS Technologies (stock code CDX) last traded at $2.22

$2.2596c to be returned to shareholders leaving a clean listed shell.

Total Class Issue: 37,681,632 shares

Ausron (AUX) did a similar thing last November/December. The clean listed shell traded around 2c however AUX had a total class issue of 385,961,430 (i.e. the market valued the llsted shell at about $7m) On this basis CDX should trade at about 20c/share ex dividend and capital return. Where the 1 for 10 consolidation happens this would be more like $2/share.

CDX announcement below:-

1. to pay an interim dividend to shareholders of $1.18 per share;

2. subject to the approval of a special resolution of shareholders, to make a payment to shareholders of $1.0796 per share on account of a return of capital;
and

3. subject to the approval of an ordinary resolution of shareholders, and following the return of capital referred to in item 2, to consolidate its share capital by converting every 10 shares currently on issue into 1 share.

The record date for the interim dividend will be 2 February 2007, and shareholders registered at this time will be entitled to the dividend. The dividend will be paid on 9 February 2007.

The ex-dividend date for the interim dividend will be Monday 29 January 2007.

News items suggest there may be further (small) amounts of capital to be returned as minor business interests are sold.


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