Colliers manage to get Sky $2.25K/sqm which would be about $95M. I know some will think that is overly optimistic...and maybe it is, this is SKT after all! But let's just imagine a best case where they can actually get a price/sqm that is close enough to what other properties seem to be able to get at the moment...
And let's just say that after all fees and costs etc Sky have $90M.
Well, they could do a tax free distribution of $75M of that to shareholders by way of capital return. For every 7 shares owned, cancel 1 and pay sharholders $3/share. This is what I have mentioned before, and the more I think about it the more I think I would prefer this to an on market buyback.
Sky further reduce s/o to 150M while also effectively giving long suffering shareholders a tax free dividend.
In this scenario they would also keep $15M...which would give them a cash balance of $50M+. No debt, so balance sheet is still strong.
And if you think the worst case scenario is that they walk away with only $50M for the campus then you can rework the above figures...but the approach/principe remains the same.
If they do the buyback/CR as per my description...
Then they can start a dividend next year. Even if the dividend starts out at $30M p/a that would be 20c/share. The SP would probably sit somewhere between $2.50 - $3.50 depending on assumptions for yield and the market's expectations around growth.
SP could even hit $4 ($600M market cap) if the growth story got more traction.
THEN Sky is in a much strong position when it comes to exploring any M&A transactions.
mistaTea got it allllll figured out! Don't you worry!
All the ideas are great! Do mista tea's share cancel/buy back along with ogg's 150,000 free WiFi plans. My quick math makes that a bargain at 15mill. Assuming 65mill for the property sale. 15mill WiFi plan and 50mill buyback/cancel.
Edit: quick math was only for a month...
So I reckon just oggs idea of the squid games is a goer. But not liking my chances as I feel all sky holders are desperate.
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