That is a very impressive number based on current levels.
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$4.40 post consolidation post buyback would represent a market cap of about $600M.
Doable.
Osmium have 19.1 percent of NZME at this stage . No further disclosures from them regarding Yesterdays large purchases of Sky shares… so far. If they keep buying till just under 20 percent which is the max I understand they can own before they must issue takeover. So is this the start of something much bigger and what synergies would there be if both company’s were taken over?
UBS Group bought 6% of NZME. Wonder who else is eyeing SKT?
http://nzx-prod-s7fsd7f98s.s3-websit...419/353835.pdf
NZME merger could make sense if the strategy is to expand their reach as a straight media play with wholesale broadband deals (rather than become a telco, which they clearly have no appetite for).
NZME pumps out generous cash flows too…
I personally still think telco would realise much more value long term, but NZME is not a completely bonkers idea either.
I don’t think we can infer from Osmium’s investment in sky that there is any grand merger plan here though.
Buybacks and divvy’s the most likely way forward imo.