Premium was already built into the share price ever since they picked up their first parcel.
We're talking about a company worth $700m that is yet to make a profit.
REA is going to need to get this acquisition earning circa 70m a year just to get a 10% p.a return on investment, this is considerably lower than the 40% returns that they have been able to generate on the current equity. There is going to be a lot of pressure on them to get this right otherwise they've just destroy a lot of shareholder value.
- Forums
- ASX - By Stock
- IPP
- Ann: Proposed merger between iProperty Group and REA Group
Ann: Proposed merger between iProperty Group and REA Group, page-23
-
- There are more pages in this discussion • 14 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)