Retail Holdings announced that it's 54.1% owned subsidiary, Sewko Holdings Limited, has placed additional shares of the Company's listed operating subsidiaries. In Bangladesh, an additional 4,616,833 shares were placed, reducing the Company's equity stake in Singer Bangladesh Limited to 64.1%. In India, 278,942 shares were sold, reducing the Company's equity stake in Singer India Limited to 72.4%. In Sri Lanka, an additional 10,620,435 shares were placed, reducing the Company's equity stake in Singer (Sri Lanka) PLC to 71.2%. The total proceeds from the sales, net of placement and brokerage commissions, taxes etc., were approximately $19.3 million, 54.1% of which is attributable to Retail Holdings (RHDGF)
Commenting on the placements, Stephen H. Goodman, the Company's Chairman, President and CEO, noted, "The placements represent another step in the Company's strategic program to monetize the underlying value of the Company's assets. The $19.3 million realized so far in 2017 is in addition to the $68.9 million realized from similar sales and placements in 2015 and 2016. Additional sales and placements are likely in 2017, subject to accommodating market conditions."
This is why I bought the company. The management is slowly selling off shares of the operating subsidiaries and distributing the proceeds to shareholders. This is good for Retail Holdings shareholders because the value of the subsidiaries is more than the value of the parent company.