https://www.nzherald.co.nz/entertain...N2DFQC72FCSKM/
Ogg will be gutted.
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https://www.nzherald.co.nz/entertain...N2DFQC72FCSKM/
Ogg will be gutted.
Either they didn’t get the interest they wanted, and now won’t sell it because they can only get chump change for it…or…
An intense bidding war is ongoing and shareholders are in for a massive windfall!
Is it premature for me to nip out to New World and grab a bottle of Dom Perignon?
It was useful to get a breakdown of CAPEX needs for Sky.
Interestingly, the 'stay in business' CAPEX requirements for Sky is only about $10M-$15M.
That produces FY21 Owner Earnings of $110M-$120M.
Since investing in Sky I have conservatively taken the entire CAPEX spend and treated it all as 'keep the lights on' (and therefore end up with a lower OE figure). I think this is still fair at the moment because the money spent on growth is tied to survival...and in a way is all 'stay in business' spend (i.e. if they don't invest in streaming, broadband etc there would not have been a business left for very long).
But still useful to get the breakdown. Once the big investments are completed over the next 2-3 years FCF will rocket up again. We will stay FCF positive the whole way (which is amazing when you think about it) but should comfortably generate FCF north of $50M again in a few years if Management and The Board are effective in their strategy.
I have to say, these "unsolicited offers" seem unlikely to eventuate into anything.
It has been over 3 weeks since they announced that they have employed Jarden to help with a review. Jarden would have been employed before the Investor Day...so it could be more like 4 weeks.
I think it would only realistically take a week or two for The Board to decide if they were going to pursue any of the deals. Certainly not a month.
My guess is that they are not moving forward with any of the proposals.
It would also appear that the property sale is not happening either, for similar reasoning.
So what next, perhaps Ogg will consult his crystal ball again:mellow:.
Wow ogg, how uncanny a minute after you posted.....
https://www.sharetrader.co.nz/image/...AAAElFTkSuQmCC