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Illiquid ADR


JayGatsby
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So a few years ago I bought an ADR in a New Zealand microcap (NZO). The shares had low liquidity at the time and now have absolutely none. There's currently a tender offer outstanding for the underlying shares. Does anyone have suggestions for how I can realize that value? I checked with Schwab and they said the ADR has no voting rights and they don't know who actually owns the shares. I have an email into the company to see if they have any idea, as the ADR has "sponsored" in the name.

 

ADR is NZEOY and the stock is NZO. If anyone can trade New Zealand shares it's actually an interesting situation. There's a tender at 0.74 and shares are currently at 0.715. The acquiring company has 40% accepted so far and says as soon as they get to 50% they'll close the tender. The stub equity will then remain publicly traded. So if you have the ability to buy NZ shares you should be able to flip them in the tender pretty quickly.

 

Worst case I guess I just hold forever! It's a tiny company so likelihood the remaining shares are bought eventually seems pretty high. Not sure why they're only tendering for some... perhaps they think they can buy those shares cheaper than offering a full takeover premium.

 

Thanks

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