GXY paid $20 million in equity in A40 for the box seat in a relationship with A40. I don’t think they actually cared about the potential future value of the equity stake. It looks like they were positioning themselves among the large A40 shareholders as a potential partner. Wolf in sheep’s clothing....
GXY want the tennants and the plant.
They forked out another $40 million for the debt. Own the debt, control the assets.
They’ve effectively taken control of a $120 million company for $60 million. Without a messy takeover bid or overpaying. They’ve now almost doubled their output capacity.
The $40 million is secured against plant and equipment. So they will get that back one way or another. The other $20 million will be the “cost of doing business”.
The $40 million they funded it with was using their own debt facility, which I guarantee isn’t at 15% p.a
If they really wanted to make work for A40, why wouldn’t have they given them a lower interest rate?
- Forums
- ASX - By Stock
- GXY
- Own goal?
Own goal?, page-3
-
-
- There are more pages in this discussion • 27 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add GXY (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online