The thing to consider is that GWR is a debt free company with a market cap and Enterprise Value of $200 mill right now.
FAS needs to fund this takeover and will be in debt to the tune of $200 mill plus probably.
So the new entity - post successful take over(god forbid) has to pay an interest bill of $16 mill per annum and the debt also means the Enterprise Value now becomes zero - a loss of $200 million in Enterprise value.
Do you know what the share price will become post takeover -
look at Centro's shares for an idea !
To the GWR shareholders thinking of converting from GWR to FAS ..
from success to certain failure .. please rethink.
At least wait for a cash offer for your GWR shares - as FAS's shares are just pieces of paper.
And you dont want to be part of the inevitable share price plunge post takeover.
Dont be fooled.
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Mkt cap ! $24.73M |
Open | High | Low | Value | Volume |
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Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 278275 | 7.6¢ |
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Price($) | Vol. | No. |
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8.1¢ | 25278 | 1 |
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No. | Vol. | Price($) |
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4 | 278275 | 0.076 |
1 | 41666 | 0.072 |
1 | 14285 | 0.070 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.081 | 25278 | 1 |
0.082 | 276612 | 1 |
0.083 | 12049 | 1 |
0.085 | 200000 | 1 |
0.091 | 1260 | 1 |
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