I trust that the board have discussed all the possible outcomes of the capital management plan already and have selected the one that will be in the best interest to the company and shareholders.
3 weeks to go, in the endgame now.
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I trust that the board have discussed all the possible outcomes of the capital management plan already and have selected the one that will be in the best interest to the company and shareholders.
3 weeks to go, in the endgame now.
You'd have to expect some loose lips somewhere between investment bankers and the SKT board re, capital structure announcement in a couple of weeks. Maybe the actual 24th will be an anti-climax but we see a decent run up beforehand? I'm thinking maybe much of what will be announced on the 24th is already priced in or will be priced in over the next, say, ten days. All valuations point to a share price closer to $4.00 than $3.00. Maybe we will creep closer to $3.00 over the next week. I hope so.
For a stock like Sky which has now demonstrated operational & earnings turnaround, has a strong financial position (surplus cash which provides capital management options) and also clearly has multiple M&A options to pursue, $2.50 is cheap as.
Tempted to add more but I added more during the recent sell down by short term traders so will leave the ones shouting out currently at $2.50 to be taken to others at this stage.
Wake up one morning and the deal will be done and there is no time to get set - that’s still my view.
Sky “merging” with 2D/vocus would be the opposite direction - the much larger private company 2degrees/Vocus Goliath buying the relatively tiny SkyTV (somewhere between 5x-10x size difference by enterprise value). They would be offering cash to sky shareholders if that was to happen, as there would be no publicly listed shares for them to offer (unless they waited until after they IPO’d). Even if 2degrees were to offer shares, you would be receiving shares in a company where sky is a minor segment compared to the rest of the business - for better or worse.
If 2degrees/vocus make a move I would be very surprised if Spark didn’t also make play. Sky would be a great addition for any of the telcos in NZ and offer a point of difference to their competitors!
MissusTea must be getting excited. I reckon you should probably push your valentines date out to the 24th, you'd be in for a real treat I'm sure.
In other news, further details on Orcon / 2degrees merger. IPO apparently firmly off the table now that they have deep access to capital. Paywalled: https://www.nzherald.co.nz/business/...ZQREQJ7452D3E/
There is a huge factor at play which has not been covered by the media or analysts so far imo.
That factor makes the acquisition or merger with Sky almost a certainty.
Only issue to me is timing.
As Rachel Hunter in her youthful day used to say ‘It wouldn’t happen overnight but it will happen!’
Set and ready for action!!!!!$