Good post, but your analysis of the tax is likely to be...

Good post, but your analysis of the tax is likely to be incorrect.

If the bidder purchased the CHN shares, then basically they would be inheriting a tax liability down the track, and therefore would have discounted the purchase price accordingly. Buying the assets directly gives them a new cost base and therefore no inherent tax liability. Therefore, an asset purchase was probably the only option on the table. I have no idea about Eritrean tax though, so the principles may be different.

I am not doubting that this is value at current levels though given the cash backing. I am just trying to understand if I am missing something before jumping back in (I used to be a shareholder back when this stock was in the 60s and am still a fan).