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10-06-2020, 10:55 PM
#2881
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10-06-2020, 10:56 PM
#2882
Originally Posted by Quantitative Easing
I think the offer will be 6-7 x EBIDTA...
Mate, I’m trying to wind down and get ready for bed now.
Don’t go giving me a semi like that...
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10-06-2020, 10:59 PM
#2883
Originally Posted by Quantitative Easing
I think the offer will be 6-7 x EBIDTA...
I doubt they will be looking at the financials.
Sky is a strategic asset. It's about how do you leverage that to reach more customers.
I suspect a low ball opening offer with multiple parties interested.
Fox went for 16x ebita. Warner deal was 13x. Sky UK was up near 17x I think.
There's potential for Sky to go 50c+ but it's unlikely without a big bidding war.
More likely just one buyer, Infratil, and it goes for 30c.
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10-06-2020, 11:40 PM
#2884
Originally Posted by Snow Leopard
Apart from you guys is anyone else actually speculating on a takeover bid?
Originally Posted by Ogg
Comcast is the only logical buyer that could push it past 40c.
They have Sky UK and could merge the branding together easily.
Their content is already on Sky and they could add more channels.
They could use it to enter the NZ broadband market.
They could use Lightbox and Neon for their new PeacockTV platform.
They might want to have a bigger base here because NZ is Covid free.
Does not answer the question does it?
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11-06-2020, 12:00 AM
#2885
Member
Originally Posted by Snow Leopard
Does not answer the question does it?
That is my question as well.
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11-06-2020, 07:04 AM
#2886
I still think it could easily go for 24 cents. Here is some simple reasoning. 3/4 of all shares that are on issue have been granted/bought at 12 cents. 24 cents is a 100% gain on that. 24 cents is also about a 30% premium to the 30 day weighted average blah blah which is about a standard for takeovers. All you guys getting hard ons with talk of 6-7x Ebits and 50 cents this need a reality check :P
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11-06-2020, 07:36 AM
#2887
Originally Posted by blackcap
I still think it could easily go for 24 cents. Here is some simple reasoning. 3/4 of all shares that are on issue have been granted/bought at 12 cents. 24 cents is a 100% gain on that. 24 cents ...
This is where your thinking becomes a little muddled blackcap.
Yes you are correct that the vast majority of new shares have even issued at 12c. But that does not mean that 3/4 of sharholders are sitting on an average of 12c/share. Nowhere near it.
If I get my 120% I am probably one of the 'luckier ones' sitting on an average of 33c.
So if IFT-Brookfield come in and offer me $400M for the business (~24c/share) it is not a no brainer to me. I, along with the majority of other shareholders, have to ask ourselves if $400M really represents a premium to intrinsic value given all of the positives and negatives about the business...the imminent entry into broadband etc...
It will be interesting to see how this plays out. It may well be that the first offer is lowball...and I can't sit here just wishing for an offer $600M minimum because it is higher than my average - this whole journey with Sky has been one big reality check...but ultimately I think IFT are raising $300M because they know they are likely going to have to pay for a company that will be going for north of $500M.
Not sure if Spark would have the cheek to try and buy Sky too now after what they did in 2016...but if the asset is cheap, and they want to keep it sway from Vodafone it is worth a punt.
It would be a shocker to me if there was not some kind of bidding war for the asset. And if there is a bidding war then I think it could get to 40c.
I can't see 50c/share - that would take one hell of a bidding war, and the outfit who 'won' at 50c would have to be super super keen to have the business.
Last edited by mistaTea; 11-06-2020 at 07:37 AM.
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11-06-2020, 07:42 AM
#2888
Originally Posted by mistaTea
This is where your thinking becomes a little muddled blackcap.
Yes you are correct that the vast majority of new shares have even issued at 12c. But that does not mean that 3/4 of sharholders are sitting on an average of 12c/share. Nowhere near it.
If I get my 120% I am probably one of the 'luckier ones' sitting on an average of 33c.
.
The bidder (if there is one) does not give two hoots what your average is The past price and investors averages is irrelevant. What is relevant is looking forward. Maybe I am being too pessimistic, however it would have made more sense to launch a bid a few weeks ago when the SP was very suppressed at 30 cents with the big debt still to pay.
But you make some good arguments as to why someone may end up paying more. Time will tell.
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11-06-2020, 07:45 AM
#2889
Originally Posted by blackcap
The bidder (if there is one) does not give two hoots what your average is The past price and investors averages is irrelevant. What is relevant is looking forward. Maybe I am being too pessimistic, however it would have made more sense to launch a bid a few weeks ago when the SP was very suppressed at 30 cents with the big debt still to pay.
But you make some good arguments as to why someone may end up paying more. Time will tell.
But it is not 'irrelevant'...
I appreciate a bidder couldn't give two hoots what I am 'on the table' for...but ultimately shareholders need to approve any takeover offer. I think a lowball offer would be unsuccessful because if it is too low, then enough shareholders would rather keep the business and have a go at becoming a telco.
Any offer made has to be greater or equal to the independent valuation the Board end up getting AND has to be enough to induce enough investors to vote for it.
And your example of $400M... well that would be like someone coming in before the CR and offering $250M... I know the SP has taken a hiding, but I can not envision existing shareholders back then letting someone take 100% control for $250M.
Last edited by mistaTea; 11-06-2020 at 07:56 AM.
Reason: clarification
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11-06-2020, 07:49 AM
#2890
Member
Who did the Current ceo work for before sky? Wasn’t it some tv crowd in the uk? Any potential there?...
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