https://i.imgur.com/hqYb73l.jpg
OSB and Rugbypass are gone.
The Mount Wellington Campus is likely the crown jewel in their property portfolio. What else do they have, the warehouse in Albany?
Current facility ends in 18 months. What would be the interest rate on this now given that interests rates are rising globally, 6%...7%? It costs 1m just to have the facility too.
The banks could pull the pin anytime and Sky would have to come up with the cash. Do you wanna another death placement?
I'm not saying Sky can't borrow, or that it shouldn't borrow. What I'm saying is that Sky isn't a blue chip infrastructure stock with regular earnings. The banks will likely be hesitant on any new leading, especially without any hard fixed assets. They too will be look at the share price and thinking this ship is sinking!
This is why it's important that Comcast or Discovery takes Sky over as they can borrow at 50 year bonds @ 3% rate.
Borrowing to pay a dividend is just stupid. The stock won't even go up. People will just sell it down.
Sky can continue to operate 'as is', BUT it's never going to reach it's full potential and hit the $100m revenue target under it's current ownership structure. The only way out from here is a takeover!