Current investors might have to stump up for a capital raising if they buy Valley, however given their past history with their bankers I would say they will be able to raise the capital from current lenders and not issue new shares.
Currently they are at $180 mill debt from memory and if the figures circling of $70 to $80 mill for Longwall that is around 1/4 of a billion. Put together the synergies and that IDL already resel Longwall products it will give further margin. When ever they have purchased companies they generally buy with a very low PE. The huddys deal was unfortunate that IDL got caught in the recession where they put a whole lot of their machines on ICE.
I will be very bullish if the deal comes of, and beleive the SP will drop short term and recover north of where it is.
I still think putting the two companies together will lead to a takeover in the next year.
DYOR
IDL Price at posting:
$1.29 Sentiment: Buy Disclosure: Held
