Following the recent announcement by DVN that majority shareholder Leighton (LEI, 50.6%) intended to sell all of it's shares, the market was further updated that both Leighton and the board of DVN now believe it is in the best interests of all shareholders to consider a sale of the business.
This is potentially great news for the rest of the DVN shareholders.
I can understand LEI potentially being happy to take less than NTA on their holding so they can clean up their own balance sheet, however the board of DVN would have a difficult time convincing the rest of us this would be a great result.
The property market has not collapsed since then, and barring any further mega write-downs like we have seen, NTA should not move too much.
So with the stock at $1.07, the potential magnitude of upside still warrants holding, in my opinion. If a sale does not eventuate, I'm left with what looks to be an improving business selling for less than physical value.
Kristian
Disclosure: own DVN
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