A company is trading at $5 per share, they are a manufacturing company and their land is very valuable. They want to sell out their factories and their land involved, so it looks like they will have no core business left, just sitting a pile of cash after they sell it.
Threy just entered into a conditional sales agreement (needs to be completed within 6 months) with another company who wants to buy their land, factories, all it's assets --- after subtracting their loans/debt, this company will still be receving roughly $12 per share after they sell their factories and land, it is only trading at $5 now. It seems the management wants to retire also and just distribute out the $12 per share to the share holders. The only problem is the stock exchange states if the company has no core business, the stock will be suspended soon (hopefully they can release the $12 per share first). What will happen if I hold shares in the company, the stock gets suspended, and its sitting on $12 per share? Can it still distribute it out?
Why is the stock trading at only $5 per share? Is there any "catches" if I buy the share now at $5 and wait 6 months till the sale is completed, and they distribute the roughly $12 per share to its shareholders?