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13-11-2017, 09:12 PM
#731
Not sure if it has already been mentioned, but street talk (on AFR) has revealed:
- raise $NZ70 million via renounceable rights issue.
- offering the shares at 42¢ apiece and plans to use the proceeds to strengthen its regulatory capital base (step discount!)
- Goldman Sachs is overseeing the deal and the transaction will be wholly sub underwritten by a group of institutional investors
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13-11-2017, 09:23 PM
#732
Originally Posted by trader_jackson
Not sure if it has already been mentioned, but street talk (on AFR) has revealed:
- raise $NZ70 million via renounceable rights issue.
- offering the shares at 42¢ apiece and plans to use the proceeds to strengthen its regulatory capital base (step discount!)
- Goldman Sachs is overseeing the deal and the transaction will be wholly sub underwritten by a group of institutional investors
Nice find, TJ. That's one helluva discount; worse yet though, what a horribly botched announcement!
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13-11-2017, 10:05 PM
#733
Originally Posted by Hectorplains
Nice find, TJ. That's one helluva discount; worse yet though, what a horribly botched announcement!
Agreed - it did seem a really odd time to put a trading halt on. Perhaps they got wind of a leak and put the hold on before trading on this hit the share price?
With 168.662m shares on issue, a 1:1 rights issue at NZ42c would raise $70.8m which aligns with the AFR commentary except for a rounding difference.
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14-11-2017, 10:24 AM
#734
Reading the stuff Tower put out this morning nothing can go wrong in the future ..it is all go and F18 will be brilliant.
transformation 18 times and platform 12 times in announcements ....some replication of material though. I just love reading stuff like this
”When investors are euphoric, they are incapable of recognising euphoria itself “
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14-11-2017, 10:25 AM
#735
336m shares on issue , huge dilution for existing holders and they might get a 1c dividend in the future if there lucky. looks expensive at current prices
one step ahead of the herd
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14-11-2017, 10:31 AM
#736
Might be worth a punt but advise caution as to why the steep discount? If this is a guaranteed no brainer why do they need to discount so much.
Will be looking at the forecasts.
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14-11-2017, 10:41 AM
#737
Originally Posted by bull....
336m shares on issue , huge dilution for existing holders and they might get a 1c dividend in the future if there lucky. looks expensive at current prices
Only diluted if you don’t front up with the cash ...but doubling your holding might not be what everybody wants to do
Using say $20m profit (their underlying number) that’s eps of 6 cents on higher number of shares so they might eventually end up at 60/70 cents again next year....yes?
Would you buy now though but interesting to see what eventuates.
Bad luck current shareholders ...might be good for the vultures.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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14-11-2017, 10:42 AM
#738
Originally Posted by Schrodinger
Might be worth a punt but advise caution as to why the steep discount? If this is a guaranteed no brainer why do they need to discount so much.
Will be looking at the forecasts.
I think this will turn the corner, anyone remember the massively discounted Nuplex rights issue about a decade ago? That was a great money maker.
The $70m raise repays BNZ and also covers the chance they lose the Peak Re arbitration which leaves an underlying npat of $18-20m a year and Canterbury, finally, well provisioned in the accounts.
I won't bet the house on it as insurance can be a tricky business but I will take up my rights in full and with a post-rights average of around 70c I hope by FY19 they are paying c. 5cps in dividends = 7/8% yield. Thats if they aren't taken over once the balance sheet is cleaner in FY18.
My guess, and it is only a guess, is the share price is 80c+ by Christmas next year (barring no major earthquake).
DYOR as usual.
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14-11-2017, 10:46 AM
#739
Tower at least are more transformational than PEB
”When investors are euphoric, they are incapable of recognising euphoria itself “
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14-11-2017, 10:53 AM
#740
Originally Posted by Arbroath
I think this will turn the corner, anyone remember the massively discounted Nuplex rights issue about a decade ago? That was a great money maker.
The $70m raise repays BNZ and also covers the chance they lose the Peak Re arbitration which leaves an underlying npat of $18-20m a year and Canterbury, finally, well provisioned in the accounts.
I won't bet the house on it as insurance can be a tricky business but I will take up my rights in full and with a post-rights average of around 70c I hope by FY19 they are paying c. 5cps in dividends = 7/8% yield. Thats if they aren't taken over once the balance sheet is cleaner in FY18.
My guess, and it is only a guess, is the share price is 80c+ by Christmas next year (barring no major earthquake).
DYOR as usual.
5c div sounds bit much? thats all there profit i would think 1c if your lucky while they still have christchurch on the books
one step ahead of the herd
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