Can't blame him. I've lost count of the numbers of day SP closed higher. :t_up:
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Can't blame him. I've lost count of the numbers of day SP closed higher. :t_up:
SOLD to GMT for $56mln...
The announcement we've been expecting:
Sky confirms sale of Mt Wellington properties for $56m - NZX, New Zealand’s Exchange
Woop woop!
Leaseback cost not to bad either.
Be interesting to see how the market goes today.
It 'should' already be priced in.
But by March Sky will have $35M cash in bank + $55M (after sale fees?) sale + 45M or so FCF since June 30 2021 = $135M.
Market cap closed at $460M yesterday, which would mean that Sky's operations are only effectively valued at $325M by the time this deal closes.
That seems outrageously low for a business that is projected to earn $40M-$50M dollars and is about to have all sorts of possibilies opened up to shareholders with the large treasure chest they are about to have...
Thats 32 cps if they want to return it to shareholders....
Now to see whether the market has factored in the sale price already or not. Hopefully it is a positive eventful opening.
Market has factored in the property sale imo so what are the catalysts from here to drive the sp higher?
1. Capital management initiative (share buyback and/or dividends)
2. Further earnings upgrades
3. Merger and takeover
With the above & being a NZ50 stock, institutions would want to be at market weight as a minimum so there’s many more millions of shares for them to buy to get there.
I think the uncertainty was on price point (the exact price). 56m falls at the mid/higher price point. Hopefully the market reacts favourably.
I envisage that the realistic catalysts are: growth in streaming, lower turn over of satellite customers, growth of content production and a dividend (and possibly a share buy back).