He did a stint with Sky UK many moons ago...
But more recently he did a stint with a Middle Eastern broadcaster called OSN.
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Shareholders too should not let emotion get in the way of a fair offer. If I have paid $1m for a house, the housing market crashes and now its valued at 500k. If someone came and offered me $600k I would be foolish not to take it. But since I paid $1m for it I would say no? Don't think so. Past price, what people paid for a stock etc, should have no bearing on anything in the future. Granted, I know a lot of people foolishly cannot sell a stock at a loss and would continue holding.
My father is a great example. I told him to get rid of SCY at 45 cents about 2 years ago. But he had paid 48 cents for them and he cannot sell at a loss. Luckily about 3 weeks ago he exited at 14 after 2 years of pressure and nagging from me. Past price is totally immaterial. All that matters is looking forward.
I agree with you 100% Blackcap... an investor needs to ideally be looking at everything rationally at all times. If the business is actually worth a third of what it was when you purchased it, and someone offers you that (or a small premium) then the most rational thing to do is sell.
The point I would make though is that, using your numbers, a takeover offer of 24c represents ~$400M. Yes it is a premium to the new shares issued...but existing shareholders (the majority of which will be on the table for the equivalent of a market cap of $700M+) would struggle to view that level of offer as a 'no brainer'.
Is Sky TV, with all the content rights and assets it has and low debt only worth $400M? Only 2.6 times FY20 EBITDA? I don't think a rational investor would sell the business for such a small sum.
So if a takeover does come soon I will be intrigued to see how they play this.
As we experienced with the low ball OGOG offer blackcap, if a bidder missteps with the initial bid it can really backfire.
Won't SKT just commoditise the BB market.
Loss leader?How long can that last?
https://www.scoop.co.nz/stories/HL20...n-to-climb.htm
https://billbennett.co.nz/kacific/
It's not going to be sold for less than 30 as that would be below an independent valuation.
Infratil raised $300m. They're paying off $50m debt, so that leaves them $250m. If they're going halves, that means they've valued it at $500m, which is pretty close to 30c.
$500m is a nice round number. 30c is also ASB Morningside valuation. That's where I see a likely deal being done.