Author Topic: ALJJ - ALJ Regional Holdings, Inc.  (Read 15023 times)

orion

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ALJJ - ALJ Regional Holdings, Inc.
« on: November 21, 2012, 09:03:33 AM »
Had this company on my watchlist but didnīt invest. Yesterday, puzzled by the sudden jump in share price, I found out that they have sold their operating business and that they want to buy back 50% of the outstanding shares - after the sale is completed - at a price between $0.84 and $0.86 per share. 

Alpha Vulture and Whopper Investments both made a good write-up:
http://www.whopperinvestments.com/aljj-tender-arbitrage-opportunity
http://alphavulture.com/2012/11/20/alj-regional-holdings-mergertender-offer-arbitrage/

Any opinions?


Palantir

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #1 on: November 21, 2012, 09:29:30 AM »
Disappointing.....I was thinking about opening a position in a year or so after they had paid down some more debt....but my analysis was focused on debt levels going down which leads to increasing book value and then multiple expansion....which was wrong I guess.
My Portfolio: AMZN, PAGP, FSLR, OKE, PYPL, RHT, MSFT

matts

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #2 on: November 21, 2012, 12:57:43 PM »
I got into this today as a special situation play. The cash box that is left after the tender will also have a ton of tax loss carry forwards that I hope offsets any discount to book (basically just cash) the company will trade at.

orion

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #3 on: December 17, 2012, 11:06:34 AM »
Stock is down 16% today. Seems the buyer has problems with the financing.

Quote
ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) ("ALJ") and Optima Specialty Steel, Inc. ("Optima") today announced that while Optima has not completed its proposed debt acquisition financing at this time, it continues to pursue various potential financing options that would enable it to complete the transaction on or before the "Outside Date" under the Merger Agreement (defined below), which is February 28, 2013. ALJ will proceed with its special meeting of stockholders (the "Special Meeting"), scheduled for 8:00 am (Pacific Time) on December 21, 2012, for consideration of the sale of KES Acquisition Company, its majority-owned subsidiary ("KES"), to Optima pursuant to a merger (the "Merger") as contemplated by the definitive merger agreement dated November 18, 2012 (the "Merger Agreement"). The Merger remains conditioned on Optima's obtaining sufficient financing to consummate the transaction. ALJ and KES have determined not to exercise their right to terminate the Merger Agreement at this time due to the fact that Optima has not secured financing at this time.

"We are disappointed that our financing efforts have not succeeded as quickly as we had all hoped, but we continue to pursue various potential financing options that would enable us to complete this transaction, which we believe is a great fit for both companies," said Kevin Stevick, Optima's CEO.

orion

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #4 on: January 18, 2013, 08:05:42 AM »
Finally some good news.

Quote
ASHLAND, Ky., Jan 18, 2013 (BUSINESS WIRE) -- ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) ("ALJ") today announced that based on conversations with Optima Specialty Steel, Inc. ("Optima") regarding its efforts to secure sufficient financing to complete the acquisition (the "Merger") of ALJ's majority-owned subsidiary, KES Acquisition Company ("KES"), ALJ believes that the closing of the Merger is likely to occur on Monday, January 28, 2013.

Olmsted

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #5 on: January 18, 2013, 09:43:57 AM »
I had a bid in last Friday and this whole week that never got filled.  Oh well...

Hielko

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #6 on: January 18, 2013, 11:49:13 AM »
I do have a position, and this is good news obv. Bit of a bad beat: tried to buy some additional shares when the problem with the financing was announced. My order was literally $0.001 below the lowest trade price that day...

orion

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #7 on: February 06, 2013, 07:46:22 AM »
Happy ending :)

Quote
ASHLAND, Ky., Feb 05, 2013 (BUSINESS WIRE) -- ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) ("ALJ") today announced that it has completed the sale (the "Merger") of its majority-owned subsidiary, KES Acquisition Company ("KES"), to Optima Specialty Steel, Inc. ("Optima"). Optima paid $112.5 million in cash for KES.

http://www.otcmarkets.com/stock/ALJJ/news

orion

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #8 on: February 12, 2013, 11:02:22 AM »
Quote
ALJ has been informed by the depositary for the tender offer that the final proration factor for the tender offer is approximately 90.8 percent.

http://www.otcmarkets.com/stock/ALJJ/news

writser

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Re: ALJJ - ALJ Regional Holdings, Inc.
« Reply #9 on: February 12, 2013, 12:59:20 PM »
looks cheap again
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.