WAM are more than happy to accumulate holdings off weak hands. They're good fund managers.
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Another big acqusition on the way with capital raising
More color to the announcement :
https://cdn-api.markitdigital.com/ap...df02a206a39ff4
Interesting. Was thinking of topping up today.
Based on the previous acquisition it's not that big. Raising AUS$22m will get say 8 centers?
I'm a bit surprised they are raising equity after announcing only a few weeks back that they are looking to pay dividends in the last quarter of this year. So we are funding our own dividends- cool.
Chris was supposed to be a guru at raising debt. Would have preferred no dividends and $22m more debt on the balance sheet- which it could absorb quite easily!
Industry is going through consolidation and whilst it would be really nice to get a sizeable acquisition for EVO to bulk up fast, I believe management prefers to add on bite size acquisitions whenever these become available.
And ready cash in the bank tends to secure the best deals when players are exiting the industry and selling out.
That was my gut feeling also. Something small could have been funded from existing cash as only part of the $59m of cash at 31 Dec 2020 is effectively unavailable as needed to fund until the next MoE payment on 1 March and the $27m previously announced acquisition.
Something medium could have been funded from a combination of existing cash and a bit of drawn down bank borrowing and a liquidity facility.
The Chris's have decided what they have planned to buy is worth issuing around 20m new shares which will dilute their shareholdings from 24.6% to 21.5%. My guess is an acquisition is nearer $40m generating around $10m of EBITDA/yr.