Back of the napkin calc, this isn’t eps accretive. Will still participate.
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Back of the napkin calc, this isn’t eps accretive. Will still participate.
Lets face it - IFT only makes big EPS when they sell stuff they bought cheap. So - the question is, do you believe they will make lots of money when they resell Vodafone in a handful of years? Is the money they pay now for them really cheap?
Who knows, bit like playing Lotto. Only one thing is sure - the money for Morrison will continue to flow.
They are pretty smart operators so it wouldn’t surprise me. They already stripped the transmission towers for huge $$ so the initial purchase with the Canadians was very smart. They are paying a lot more this time, so who knows.
This is a share I’ve had for a long time and don’t think about, unless they occasionally ask me for more equity, which I will give them until they let me down.
No.. they are simply calculating the value based on what they are paying lol
The enterprise value includes one nz’s debt.
I wonder if they will use the increase in value that they themselves set (based on what they are paying) to give Morrison and co a bigger bonus…
Thanks James...I am now totally confused and clearly have the wrong idea....have a science background.
If someone bought my house for 1m.....then that's its value,
If it had debt associated with it of 200K....and they bought that as well...then surely its value is 800K ?
Sorry for the dumbass questions...probably should have taken it off line with someone.
14/5/2019, 8:30 am TRANSACT
Infratil announces NZ$3.4 billion acquisition of Vodafone New Zealand
A consortium comprising Infratil Limited ("Infratil") and Brookfield Asset Management Inc. ("Brookfield") today announced it had executed a conditional agreement to acquire Vodafone New Zealand Limited ("Vodafone NZ") from Vodafone Group Plc for an enterprise value of NZ$3.4 billion (the "Acquisition")(1).
https://www.nzx.com/announcements/334468
When you buy a company you buy it’s debt as well. So if a company cost $1m and had $500k of debt, you could think of it as the future cash flows of the company being worth $1.5m.