That sounds good and all, but realistically they'll have to...

First 38 Last

Share
Profile

Follow
Navid

79 Posts.

0

27/02/18

17:16

Post #: 31388002
Share

Originally posted by DeltaHedge ↑

You've mentioned before they should keep NZ and i agree.

Realistically, Vocus have two options:

1. Try to sell NZ
2. Cap raise

I think right now option 1 is riskier, if they don't get the sale price to pay down enough debt and fund the ASC, then they are forgoing a profitable business segment in NZ and still opening themselves to debt covenant issues. Even though with option 2 there is a risk of minimal subscription to shares, i think most investors and instos will see the light at the end of the tunnel and cough up the $150m. What's your thoughts?

TLDR if they do a cap raise now, they will have $150m in 4 weeks and will be clear sailing (and i would actually buy in) v the unknown possibility of a buyer not offering $450m + by June 2018.

Expand

That sounds good and all, but realistically they'll have to offer the shares at what? $2.00? The instos will not like that one bit! So I doubt it happening. If the SP was somewhere between $3-3.5 maybe they would've had a chance to offer CR at $2.5-2.75

VOC Price at posting: $2.41 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

LISTEN: HotCopper Wire Podcast #051 – The President who cried peace

LIN

Lindian Resources on target for first rare earth production at Kangankunde

The ASX Today: Market wavers even as US-Iran talks progress; WiseTech plunges on White investigation

ING

Inghams shares sink after bird flu detection prompts biosecurity crackdown

Expert Exchange: US-Iran ceasefire – What it means for markets, oil, and the Middle East

First 38 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

That sounds good and all, but realistically they'll have to...

Top Stories

LISTEN: HotCopper Wire Podcast #051 – The President who cried peace

Lindian Resources on target for first rare earth production at Kangankunde

The ASX Today: Market wavers even as US-Iran talks progress; WiseTech plunges on White investigation

Inghams shares sink after bird flu detection prompts biosecurity crackdown

Expert Exchange: US-Iran ceasefire – What it means for markets, oil, and the Middle East

Featured News