Ann: Establishment of Multicurrency Debt Issuance, page-42

re: Ann: Establishment of Multicurrency Debt ... nih123 - you are not making sense. The TICR refers to interest, not debt. If they can get loans at 1%, then there is no issue. However, at an interest rate of 7.5%, there is an issue - namely that they will need to dilute in order to draw down on the full $425m facility.

Using your numbers, for arguments sake, we get 121-85 = $36m EBIT shortfall. how does that equate to 10m shares, with current SP @ $4.2 and purchase multiples of 5x EBIT? 36 x 5 = $180m acquisition cost / SP of $4.2 = 43m shares. You are clearly numerically illiterate.

Veecat - you are being tough on yourself - 105m EBIT translates to 52.5m NPAT assuming 30m interest and 30% tax. (you didn't deduct interest). 52.5m/105m = the 2:1 ratio I mentioned above. (@6x EBIT its 28m to the good)

You are 100% correct - they are making money, my only suggestion is that the marginal benefit of subsequent purchases will be subdued due to the dilution required compared to the debt-fuelled purchases seen recently.