Originally Posted by
Snoopy
From this morning's announcement. Nothing new but a slight change in emphasis (the bracketed bit)
"After the sale proceeds are received on settlement and debt repaid, PGW would expect to have a cash surplus of circa $210 million (subject to transaction completion timing, working capital requirements that can fluctuate materially through the annual cycle and other transaction wash-up items)."
I guess this fixes up the pension plan shortfall that periodically comes up. Big redundancy cheques to come for all those overpaid execs who now find themselves in a much smaller pond, courtesy of we shareholders of course. Redundancy does not apply to any executives with one leg though. They have already been 'right sized' by being chopped in half.
"The options for a capital return to shareholders being contemplated by the Board would allow PGW to reset its debt position and right-size its corporate operations for the business going forward.” Mr Burt said."
Hmm, so maybe not quite as much cash available to shareholders as previously mooted? A very sad day as the benefits of nearly half a century of New Zealand seed research and development are harvested overseas. No doubt plenty of cash still left though, for the greedy short term shareholders such as Some Leopard, Percy and myself.
SNOOPY