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  1. #2311
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    Quote Originally Posted by Balance View Post
    Seems like Sky's capital raising & underwriting structure is working a treat!

    expecting in the post-issue market for the shares to trade at 15c to 20c.
    KMD has doubled from placement price of only 50c.

    Quote Originally Posted by Balance View Post

    1. The reason why the underwriters require such a heavily discounted and dilutionary manner is so that:

    (i) existing shareholders are 'forced' to take up the issue or get diluted heavily, and

    (ii) the underwriters will pick up shortfall stock at a very 'cheap' price with little downside.
    Underwriters unlikely to get much stock. Only got 4% of issue currently. Most will take up their entitlement in full. Exlcluding perhaps Rugby NZ and RugbyPass shareholders.

    Quote Originally Posted by Balance View Post

    SKT is doing exactly the same thing - it's clear no suitor has emerged to takeover the company and the banks want their money back.
    Bank happy to lend more, now $200m + extended 1 year.

    Quote Originally Posted by Balance View Post

    In the case of FFS, the underwriters ended up with a big chunk of the capital-raising stock (>20%) at 25c.
    Doubt they will get more than $50m total. Approx 16% issue.

    Conclusion. This is great entitlement offer if

    A) You participate.
    B) You got Sky shares relatively recently

  2. #2312
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    I donít think you can compare a company like FFS with SKT and thatís an understatement.
    SKT has so much more potential upside than FFS ever had and I think the market will acknowledge that when it all settles down.
    My view is it will be WELL north of 12c
    I think we got a glimpse of the future of the share price when the NZX made a price inquiry recently.
    Was there a leak of what was about to transpire? Itís got that look about it and it was a VERY positive response.
    Last edited by biker; 22-05-2020 at 12:48 PM.

  3. #2313
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    Quote Originally Posted by Ogg View Post
    KMD has doubled from placement price of only 50c.



    KMD was not in a distressed situation when it pro-actively raised the capital required. the issue was a 1.2 : 1 vs a 2.83 :1 here.

    Underwriters unlikely to get much stock. Only got 4% of issue currently. Most will take up their entitlement in full. Exlcluding perhaps Rugby NZ and RugbyPass shareholders.

    Time will tell. I expect underwriters to end up with >20% of the underwritten stock.

    Bank happy to lend more, now $200m + extended 1 year.

    You can be sure that the banks will only allow drawdown subject to certain conditions and covenants being met.

    Doubt they will get more than $50m total. Approx 16% issue.

    Time will tell.

    Conclusion. This is great entitlement offer if

    A) You participate.
    B) You got Sky shares relatively recently
    Time will tell.

    Just be cautious out there, people - the structure of the issue (2.83 : 1) says SKT has run out of options.

    There's certainly no white knight waiting out there. SKT is going to have to live or die on its own - in a sunset industry.
    Last edited by Balance; 22-05-2020 at 12:57 PM.

  4. #2314
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    Quote Originally Posted by biker View Post
    I donít think you can compare a company like FFS with SKT and thatís an understatement.
    SKT has so much more potential upside than FFS ever had and I think the market will acknowledge that when it all settles down.
    My view is it will be WELL north of 12c
    I think we got a glimpse of the future of the share price when the NZX made a price inquiry recently.
    Was there a leak of what was about to transpire? Itís got that look about it and it was a VERY positive response.
    Hi Biker, can you post a link to the reply from SKT to the NZX.

  5. #2315
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    Quote Originally Posted by biker View Post
    I donít think you can compare a company like FFS with SKT and thatís an understatement.
    SKT has so much more potential upside than FFS ever had and I think the market will acknowledge that when it all settles down.
    My view is it will be WELL north of 12c
    I think we got a glimpse of the future of the share price when the NZX made a price inquiry recently.
    Was there a leak of what was about to transpire? Itís got that look about it and it was a VERY positive response.
    The Ďfutureí I can tell you was a rumour that a deal was in the offing and the punters jumped in on the price momentum.

    Deal turned out to be a FFS type capital raising!

  6. #2316
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    Quote Originally Posted by Balance View Post
    The ‘future’ I can tell you was a rumour that a deal was in the offing and the punters jumped in on the price momentum.

    Deal turned out to be a FFS type capital raising!
    Wonder what the MPG deal will be like...

  7. #2317
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    Quote Originally Posted by Ogg View Post
    Wonder what the MPG deal will be like...
    5:1 at 5c if they need to raise capital?

    It is what it is - these are unusual & desperate times for some companies.

  8. #2318
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    Quote Originally Posted by Ogg View Post
    Wonder what the MPG deal will be like...
    MPG have repaid $26m in 18 months from a still strongly cashflow positive business. Not clear that they will have to raise capital but the next 12 months will be very tough once current house builds are completed. Also SKY are raising more than their pre-deal market cap whereas if MPG did raise they probably only need half their market cap...

  9. #2319
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    Quote Originally Posted by Balance View Post
    5:1 at 5c if they need to raise capital?

    It is what it is - these are unusual & desperate times for some companies.
    I have MPG at 0.067 TERP on the above figures.

    Wouldn't Metro be better to raise now then during an upcoming construction slump?

    EBITDA debt ratio on MPG is 4.0x. Bank probably already tapping them on the shoulder. Maybe that's why Bain aren't buying more on market.

  10. #2320
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    The Question:

    12 May 2020
    Dear Blair,
    Sky Network Television Limited - Price Enquiry
    We write with respect to the continuous disclosure Listing Rules.
    NZX Limited
    Level 1, NZX Centre 11 Cable Street
    PO Box 2959 Wellington 6140 New Zealand
    Tel +64 4 472 7599
    www.nzx.com
    Blair Woodbury
    Chief Financial Officer
    Sky Network Television Limited
    By email: blair.woodbury@sky.co.nz CC: sophie.moloney@sky.co.nz
    paresh.patel@sky.co.nz
    Listing Rule 3.1.1 (”the rule”) is set out in the Schedule attached to this letter. In summary, this rule requires issuers to immediately disclose any Material Information to NZX Limited (“NZX”). The rule provides limited exceptions to this obligation. Material Information does not need to be disclosed where a reasonable person would not expect the information to be disclosed and where the information is confidential and its confidentiality is maintained and where one of five safe harbours applies.
    The price of Sky Network Television Limited Ordinary Shares (SKT) has increased from $0.32 at the close on Friday 8 May 2020, to $0.465, being the current price at 10:30am on 12 May 2020. This represents an increase of 45%.
    Given this price increase, please advise NZX whether Sky Network Television continues to comply with Listing Rule 3.1.1.
    Could you please provide NZX with an answer to the above question (email: surveillance@nzx.com) before 4:00 pm today, Tuesday 12 May 2020.
    Please provide your response to this letter in “PDF” format and note that it will be published in full to the market.
    Kind Regards,
    Phil Solarz
    NZX Market Surveillance

    The Answer:

    12 May 2020
    NZX Limited
    Level 1, NZX Centre 11 Cable Street WELLINGTON
    Attention: Phil Solarz NZX Market Surveillance
    Dear Phil
    SKT Price Enquiry
    In response to your letter dated 12 May 2020 we confirm Sky Network Television Limited is in compliance with NZX Listing Rule 3.1.1.
    Yours sincerely
    Blair Woodbury
    Chief Financial Officer
    Sky, PO Box 9059, Newmarket, Auckland 1149, New Zealand
    10 Panorama Road, Mt Wellington, Auckland 1060, New Zealand, +64 9 579 9999 sky.co.nz

  11. #2321
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    Quote Originally Posted by airedale View Post
    Hi Biker, can you post a link to the reply from SKT to the NZX.
    See above for the question and the answer.

  12. #2322
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    Thanks, Biker.

  13. #2323
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    Hey mista tea. I know your shareholding was quite high. How much are you going to have to put up to maintain holding. If you like to devulge 🙂.
    Its a real shame Mr stewert wasn't put in charge a couple of years earlier. Although broadband and then possibly power are low profit enterprises its the linking of things together to make better deals for the consumer bundling. With spark its the offer of half price spotify and free lightbox. I'm with spark for the sole reason of half price spotify. My dad has sky and I know he would switch broadband for a cheaper package.

  14. #2324
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    Quote Originally Posted by Dlownz View Post
    Hey mista tea. I know your shareholding was quite high. How much are you going to have to put up to maintain holding. If you like to devulge .
    Its a real shame Mr stewert wasn't put in charge a couple of years earlier. Although broadband and then possibly power are low profit enterprises its the linking of things together to make better deals for the consumer bundling. With spark its the offer of half price spotify and free lightbox. I'm with spark for the sole reason of half price spotify. My dad has sky and I know he would switch broadband for a cheaper package.
    I am a little reluctant to get into the precise dollars and cents of the deal at this junction, but it is a 6 figure sum.

    I am also happy with the prospect of broadband, mobile etc. Initially they are going to offer their broadband service to satellite customers. That immediately gives them over half a million existing customers to advertise to. The possibilities of how they might offer discounted bundles are numerous, and I do think it will be very popular with existing satellite subs.

    And that is, potentially, just the tip of the iceberg. They won't make a hell of a lot off the broadband in and of itself - but it is the bundling that will enable them to grow profits from their higher margin entertainment business.

    They look set to offer Sky GO as a standalone product too. More savings for customers, and a big move into streaming for Sky as their existing product becomes more mainstream (as opposed to just a nice 'extra' for the dwindling satellite base).

    There will be winners and losers under this deal for sure. And it would have been much better if they did the capital raising when the shares were north of $1 - they could have raised way more money and diluted shareholders who can't/won't participate far less.

    However, we are where we are. It's not all gravy - but there is a lot to be happy about too for the participating shareholders.

  15. #2325
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    After a 5.9 year 97.5% decline in share price, it amazes me that anyone could be optimistic about SKY.

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