Originally Posted by
biker
I agree, but the risk is how much will the Government want to be seen to be extracting from the current shareholders first. CNU has always carried this political risk, and CNU entered into the UFB contract with their eyes open did they not?
Shareholders, including ACC, bought shares with these risks. The upside/downside scenario has in this case panned out on the downside. Just because the UFB is involved, doesn't or shouldn't, mean the Government will bail out current shareholders, ACC or otherwise. It does mean that they should see this project completed at the least cost to the tax payers, and the commercial reality is that in this case the shareholders of this publicly listed company may have to take a hit.
Just because the Government will see this through regardless shouldn't be seen as a tacit Government guarantee of share price or shareholder return.
I think this whole thing will hinge on the Government assessing
the political risk, upside and downside, of all the alternatives and acting accordingly, on a politically motivated basis, with the completion of the UFB rollout at its core.
An investment at the mercy of what will in reality be Government whim, is not for me, regardless of any potential upside.
Good luck to all holders and those buying in. I hope it goes really well for you.