I assume with this deal the most basic aspect is it is a way of the company avoiding taking any cash from the bank to pay for the deal. A bit like when the government builds a toll road They don't have to pay for it in theory but the company running the tolling system then gets to charge 5x plus what it cost to build the road over the life of the deal.
These sort of deals are becoming more and more common. Defer payment of cash by the company but ultimately "the market" provides the cash to cover the cost of work plus massive profit/, bonuses. Dont know if I'm old fashioned but I think company law should ban the "issuing of shares" as it is effectively printing money. Currently this method is used in takeovers, so a company can take out its competition without having the cash to actually buy the competitor.
Just capitalism 101 I guess and an example of how we end up with a duopoly like Coles and Woolworth owning pretty much everything supermarket related.
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