Ann: GRAINCORP UNDERTAKES A COMPANY TRANSFORMING , page-3

re: Ann: GRAINCORP UNDERTAKES A COMPANY TRANS... There is a lot of fluff in this one. My View Private Equity set up the entire deal. Champ wanted to offlead the Malt Plants and set up the capital raising, basically using GNC as a vehicle to list some poor performing malt plants. don't let the quote "LTM 5.7x EBITDA" fool you they have paid a lot of money for these plants, the average EBITDA multiple for the last 2 years is actually 8.8, this is before we account for Stay in Business Capital Works etc, etc. Takning the last 12 months during a period of sever window dressing that is not even a financial year and then publishing a purchasing stragety based on this, is hardly a good strategy, they should give us the investment community more credit!


Malt World Wide is not good, the Chineese have masses of Malt Plants that will undercut everyone, as do the Eurpoeans, if they want to export Malt they will be doing it at a loss. Hopefully they have enough domestic demand in the Aust and Nth American Malt Plants to at least break even.

Added this the crops in NSW and QLD are very poor, grain prices are at the lowest point since the GFC, this company is a short term sell IMO.