Update re sale of property on asx
https://cdn-api.markitdigital.com/ap...df02a206a39ff4
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Update re sale of property on asx
https://cdn-api.markitdigital.com/ap...df02a206a39ff4
Studio leaseback provisions will be a stop-gap measure...looks to me like Sky are planning on moving HQ and won't need a sprawling estate.
Selling the entire land package removes the cross-lease problem and will maximise the amount of money they can get.
Will be interesting to see if there is any media speculation as to what the entire package would likely be worth.
[QUOTE=Ogg;898959]I upped my order to asking price.
Always seem to be buying Ogg. Do you have a endless amount of money or do you have other shares your selling to buy more sky
Out of interest if you are buying what are you sitting at now holding wise. Must be about to disclose your a 5% holder 😂
I wish I'd sold out out sooner luckily I didn't sell now. Anyway onwards and upwards. Warehouse is proving much more lucrative
These were my best sells
https://imgur.com/a/CMIdEuF
Between the campus sale and anticipated cash balance at the FY results, Sky should soon have ~$150M in the bank I reckon.
Ideally they would use that money to acquire something complimentary to their core business to ensure the company continues meaningful growth…
But if that is not possible, they could take $100M of it for a buyback program and still have plenty of cash in the bank for growth/enhance initiatives (plus untapped $200M debt facility).
At the current SP they could buy back ~36% of the shares.
SP would lift somewhat if management started buying back stock…but even if prices inflate they could still easily buy 30% back.
Long term shareholders then benefit in future years with fatter dividends.
Hold up - so sky are selling studio one now as well? Wow. Full on continuation of asset liquidations continues. The amount of cash to be sitting on the books soon is significant (approaching 1/3 of current market cap post sale potentially). Also will make a debt-fueled management buyout easier if it’s on the cards.
I think that if there is one thing we know for sure by now it’s that management have no interest whatsoever owning any of Sky!
The entire property will probably go for around $90M. They will soon have $150M+ of cash sitting in the bank.
What are managements plans for the cash? Ideally it could be deployed for meaningful growth.
Let’s see. Only two weeks until the results now.
Very good chance that we will see a sale of the entire plot, with a short term lease on the current building whilst the rest is demolished for residential development. This would result in a sale price much much higher than book value I believe.
It's nice to have these one off gains, but I'm more interested to see the business doing well ie. generating good cash flows annually, otherwise the SP is not likely to move up by much.
Yes, you are very likely correct on this point. A developer possibly said "Look, we will give you $X for the lot you have listed...but we actually want the whole campus, and if you sell it to us we will give you $2.5X for it all".
The long term development potential for commercial and residential is huge - and blocks of land this size with that kind of proximity to the city never come up anymore.
Sky is going to get paid a lot of money.
Then you enter this crazy La La Land. If they were selling the campus because Comcast are going to buy them and won't want the land/buildings there would be a disclosure to the market.
Six weeks since Jarden got involved and nothing - for the last time, a takeover is incredibly unlikely now!
You also need to remember, Studio One contains a huge amount of tech. I mean MASSIVE amounts...this is why they have put lease back provisions. They will be moving somewhere else more fit for purpose to their 'capital light' model. But until they confirm where that is, they need to stay put.
And I am confident that they are moving now that they are selling the whole campus...because a developer wouldn't want them stinking up the joint long term. They will be ok with some income from Sky for a short period, but then they will want them out so they can get on with developing the land.
The stock price is down 20% since investor day. I would say a takeover is much more likely now than it was 6 weeks ago.