Comvita - CVT

[kiwidollabill]

Find the NBR headline humorous "Comvita raising $50m to fund growth"....

All of the $ is going to repay debt and transaction fees....

[kiwidollabill]

$3.81 at slightly over 40% dilution gets you to $2.72. Based on published forecast gets you to EV/EBITDA of ~10-11 probably now fair for CVT...

[bottomfeeder]

Seen it again and again, SP should drop to close to CR value, at least in the short term.

[Deeks]

Is this good or bad for someone currently holding. Bought at $3.50 ?

[Balance]

Is this good or bad for someone currently holding. Bought at $3.50 ?

Bad if you do not front up and take up the rights issue - you will get diluted.

Also, note that the capital raising is heavily in favor of institutions:

1. Institutions get their new shares first and can trade them from 3rd June.

2. Retail shareholders can only trade the new shares from 19th June.

[bottomfeeder]

Seen it again and again, SP should drop to close to CR value, at least in the short term.

Just my opinion. Hate for anyone to listen to me, after all I get it wrong as much as I get it right.

[Joshuatree]

$3.81 at slightly over 40% dilution gets you to $2.72. Based on published forecast gets you to EV/EBITDA of ~10-11 probably now fair for CVT...

Fixed price of NZ$2.50 per share which represents a discount of:

• - 34.4% to the last close on Wednesday, 27 May of NZ$3.81; and
  
• - 27.2% to the theoretical ex-rights price of NZ$3.43 (based on Comvita’s last close price on Wednesday 27 May and reflecting the issue of all new shares under the Offer)
  
  Very tasty.

[Ogg]

http://nzx-prod-s7fsd7f98s.s3-websit...904/323552.pdf

eligible institutional shareholders elected to take up 10% of their entitlements

WTF?

[traineeinvestor]

Fixed price of NZ$2.50 per share which represents a discount of:

• - 34.4% to the last close on Wednesday, 27 May of NZ$3.81; and
• - 27.2% to the theoretical ex-rights price of NZ$3.43 (based on Comvita’s last close price on Wednesday 27 May and reflecting the issue of all new shares under the Offer)
  
  Very tasty.

Unless of course, you happen to be a shareholder in which case you just got royally screwed.

Disclosure: very happy not to be a holder right now.

[Joshuatree]

Yes the major holder/s disclosed they were not taking theirs up.Got 72%of my application.