- Closed-end fund holds 16 per cent stake in De La Rue
- Valuable holding in diabetes treatment company
- Cash is building
- 27 per cent discount to NAV
Takeover interest at the smaller end of the equity market is buoyant. On my active watchlist of companies, the takeover of mechanical engineering group TClarke (CTO) completed last week, and there have been recommended bids for commodity royalty company Trident Royalties (TRR:48p) and Trinidad and Tobago-focused oil explorer and producer Trinity Exploration & Production (TRIN:45p).
Although digital media group Brave Bison (BBSN:2.5p) failed to agree an all-share merger with UK advertising and marketing specialist Mission Group (TMG:21p), I still see re-rating potential for both companies as standalone entities. Brave Bison is priced on an enterprise valuation to cash profit multiple of 5.9 times and cash-adjusted price/earnings (PE) ratio of 8, a modest rating given its track record and the improving UK economic backdrop.