Interesting post bendigo - and I hope you are as good as can be.
A takeover has been discussed a little some years ago (within this forum).
If there was an offer on the table, it would most likely come after the minister sign off (if that happens). The usual scenario for a takeover is to offer around a 15% premium on the latest sp.
If, and it's a big if, if the sp bounced to 40c again, would you be interested in selling at 46c ish? At this point in time, I think I would. I have real doubts that the sp will go gangbusters because the real market knows how bad the current management is and if there will be a chance to stuff it, then cinnebon is the man!
I mean, the old saying of "cash is king" is so true in business and VRX has virtually no cash (well very little - just enough to keep the doors open for a little while). Not only will they need circa $70m for the capex for A.Nth, they will need probably another $10-15m for opex.
I can't stress enough the need to have a quick asset ratio of 1:1. For non accountants, that means having enough liquid assets (usually cash) to meet short term liabilities (usually the debt plus payables) that are due within 12 months, excludes debtors because they quite often don't pay properly.
In my past life, that was the main reason why businesses went broke - they borrowed to set up their business and did not have enough cash to operate. I worked on the basis of having enough liquid assets to operate for 6 months with no revenue. That was the test. Always worked.
Anyway, just some food for thought.
The above is not financial advice.
IMHO & DYOR
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