Late last month Cavaleros Construction (through subsidiary Cavcon) undertook in court to agree to a settlement or compromise with creditors, bringing it control of Samsudin's holding company in South Africa, SMG Holdings.

Despite its name, Cavaleros isn't a construction company but a property investor and developer, whose main interest in the deal is vacant land held by SMG at Lanseria and, through Samrand, in Midrand and Sandton.

Samrand was suspended on the JSE in January 2002, although trade has continued in SMG's other listed subsidiary, building materials supplier Buildmax.

A Cavcon spokesman tells me it's not yet been decided how to turn the assets to account. The land holdings have variously commercial, retail and residential potential; the group's practice has been to develop and hold commercial and retail developments but take residential property only to the stage of proclaimed, serviced townships before selling it off.

Samrand's board has been reconstituted to reflect the new control. Significantly, that of Buildmax is unchanged and its recent profit statement warns "there might be further dealings in the majority shareholding". Buildmax, with a market cap of only R74m, is a minnow beside Cashbuild (R1,6bn) or Italtile (R5,2bn). Its uncertain status has probably prevented it from taking advantage of buoyant markets by expanding like them.

At 177c/share, its price has risen by 32% over the past year against around 50% by its bigger rivals. But its performance in the year to March was respectable enough, with headline earnings per share up 68% to 15,9c (9,4c), though the dividend is passed (2006: 1,5c). That gives an earnings multiple of only 11,1 - against 14,1 for Cashbuild and 19,4 for Italtile - a rating that also reflects the uncertainties surrounding the company. With those removed there's scope either for a re-rating or for Cavcon to sell on for a profit if it decides to concentrate energies on its other new assets.
 
Meanwhile, under the settlement NRB Risk Solutions' R120m claim against Samrand has been dropped. As Samrand has been crippled by accrued interest on that claim it should have a major effect on future results.

If and when the share is re-listed, the gap between the 3c pre-suspension price and latest reported net asset value of 22c (itself sharply eroded by operating loses in recent years) could narrow substantially.