As for Cashcard and CUS tie up, well for CUS with approx 133 mill shares on issue, and debt of roughly 30mill (ex leases) the EV of CUS is VERY roughly about $450 million. So assuming that Cashcard is about the same size as CUS and roughly about the same value (assuming it has roughly the same number of ATMs and the same cashflows therefrom) thats a big fish for CUS to swallow, however I think it could be achieved. CUS gearing is presently moderate and given its current position Im pretty sure bankers would be happy to throw money at this sort of a deal - plus now is the time to get debt with the historicaly low interest rates and the CUS script is nicely priced so any equity raising to fund wouldnt be as dilutive if it had been done say a year and a half ago, plus CUS has a nicely increasing cash balance at the end of each month so could also throw cash at the deal. Point is I think CUS could pull it off financialy - question with any merger is the value that could realised post acquisition, price paid, and synergies available, etc etc - As the old saying goes more people die from indigestion than starvation!!. Given Cashcard is held by a P/E mob, and given the worst of the GFC appears well and truly over not sure if CUS could get Cashcard cheaply enough to justify any deal - so it may be one of the those possible and potential attractive deals that never comes to fruition.
CUS Price at posting:
$3.03 Sentiment: LT Buy Disclosure: Held
