Seriously. The comedy on this thread from Jack & Jill is priceless.
TPG had a market cap of $6.14 billion with operating cash just under ~$500 million when they announced the takeover of iiNet.
iiNet cost them $1.6 billion. They will extract another $200-250 million operating cash from iiNet.
Cash flow increase of 42% while only costing 26% of the then market capitalisation at the time. That is a GREAT deal and huge success for Teoh/TPG.
It is absolutely mind boggling that anyone can say they paid too much for TPG.
I've read every media article about the deal and nobody seems to have picked up on how good a deal this is besides David Ramli, who has a great appreciation for how good Teoh is.
If you focus on earnings per share or PE ratios, you will never understand this company. Teoh is a savvy operator who prefers to minimise reported profits to pay less tax. Hence, the debt to fund iiNet also serves a dual purpose - a tax shield to minimise taxes while also extracting more cash to build his war chest for capex spending.
