Well here it starts, the BOD sweep & management takeover with AGM deferred until after the acquisition.
Now we will see Roy Hill management boost margins from 1% to 25% like at roy hill and refinance or retire the debt using the cheaper bond debt from HPPL and integrate the AGO assets.
$970M pa revenues at 25% = $240Mpa profits = PE ratio of 1.83 from an industry standard of 13.9 thats a 7 bagger difference or 32c per share
Thats why I consider this takeover dirt cheap and why I am angry at FMG, the BOD and the yankee bondholders who have handed AGO on a plate to Gina.
Why didnt FMG make its move in 2016 and take 50% equity at 1.6c instead of at 4.0c?!
Why did FMG sell out for a paltry $5M capital gain after calling it a strategic asset.
Why did the BOD accept 90% share dilution instead of approaching FMG gina in 2016?
Will FMG do this with other of its strategic assets?
What was the quid pro quo for FMG?
Gina is the 4th force in iron ore thanks to FMG!
The long suffering AGO shareholders who created and made this iconic company get shafted yet again and again!
Congratulations to Gina for a strong bold move at a cheap price.
She is the richest woman in Australia for good reason
The rich get richer and the poor get poorer.
