But IF infratil do decide that it makes sense now to have another crack at effectively merging Vodafone and sky...
Now is the time. Sky still has ~$50M of raised capital above the $100M to pay back the bonds.
A big chunk of that will need to be spent on getting ready for Sky Broadband in 2021.
Well, if IFT buy sky now that money can be used for other stuff since they already have Vodafone.
True. I hope Goldman Sachs are actively pumping the company to NBC and other potential American buyers at the same time so that we get a multitude of competing bids.
The good news is that I don't think the post entitlement pump has started yet. Recent gains are more likely part of the broader market recovery of Covid-19.
Ideally if the share price can reach low to mid 20's by next month, then a take over comes, it should provide a better platform. Throw in a bidding war and the stock could very much reach 50c without being too stretched valuation wise. At that price it's about ~$850m valuation, this is very top end though, and absolute bull case.
Most likely nothing happens and stock trades in the mid 20's until further news.
I looked again at the Infratil announcement just now.
- The placement size is roughly the same size as Sky TV market cap.
- They own 50% of Vodafone.
- Commerce commission should give the "green light" now that Spark has entered the Sports TV market.
- UBS is doing the book build. Which is the same investment bank involved with Sky.
- Wording in announcement: "...take advantage of new opportunities that may arise as a result of current market conditions."
- Wording in announcement: "...work underway to reset strategy and establish the new target operating model and market position across key customer segments"
mmm, is a take over of Sky by Infratil happening soon? Nah, this is all just a coincident...
I looked again at the Infratil announcement just now.
- The placement size is roughly the same size as Sky TV market cap.
- They own 50% of Vodafone.
- Commerce commission should give the "green light" now that Spark has entered the Sports TV market.
- UBS is doing the book build. Which is the same investment bank involved with Sky.
- Wording in announcement: "...take advantage of new opportunities that may arise as a result of current market conditions."
- Wording in announcement: "...work underway to reset strategy and establish the new target operating model and market position across key customer segments"
mmm, is a take over of Sky by Infratil happening soon? Nah, this is all just a coincident...
If they get in early they could probably pick SKY up for 25-30 cents....
If they get in early they could probably pick SKY up for 25-30 cents....
That's less than ASB intrinsic valuation.
I think what's happening is that Infratil is trying to act quickly and take over Sky before the American Giants (Comcast, Discovery) have a chance to mobilize.
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