Ann: Change in substantial holding, page-16

Thanks saintly96 - once again appreciate your insights.

My list of pros and cons with the Prime Turbines acquisition:

Pros

• Prime business is a good bolt on acquisition to PTB’s exiting business
• Purchase price largely equity funded (balance is interest free vendor loan presumably to be funded from realisation of assets acquired), financial resources available to develop PT.
• PTB advise they have a good relationship with PT’s management
• Diversification of customers, geographies and segments in which customers operate.

Cons

• Timing - couldn’t be worse with economic uncertainty/disruption and travel restrictions meaning that PTB management can spend time in the US getting to grips with PT
• Risk that PTB management not close enough to US ways of doing business and US business culture
• Risk that PT management don’t hang around
• Risk that PTB directors and management don’t have the band width to operate and grow a substantially larger business

I guess time will tell how it plays out, and it’s the beauty of investing in equities - there are significant rewards for picking winners. It would be foolish however to ignore the form guide and track conditions.