Correct, CIF was listed in 2 installments in 2005 & 2006 of $1.75 each. With CGF thus paying $3.50 per share for their original ~37% stake. DB would also be well underwater on their ~20% stake.
What is needed here is a catalyst. CIF has enough cash to carry on its current course for at least a couple of years. If they reduce dvd's then they potentially may not need fresh capital at the fund level at all, particularly if capital markets have improved by the Inexus debt rollover in 2012 (current debt margin is 250 points on the senior debt & 450 points on the junior).
Unless CGF initiates something, the most likely catalyst would either be someone bidding for one of the assets or a large non-CGF stakeholder to be taken out and the new holder to press for changes. Either is definitely within the realm of possibility, particularly with the ex-CEO out in the marketplace, but the NAV discount probably reflects the chances fairly adequately. Or does it? That's the investment risk!
All IMO, not advice.
CIF Price at posting:
$1.15 Sentiment: LT Buy Disclosure: Held
