I agree CharlieM has it wrong - one outcome of the GFC was that PPC-1 was largely paid for by the end users that its capacity was sold too. The accounting is indeed strange - my understanding is that the IRU's are treated as part sales of the asset itself. So we wont see any huge recurring revenue coming from them nor will we see large pre-paid revenue liabilities.
Even allowing for a HY inflayed a little by one offs from PPC-1 I still fail to see how EY can in anyway descrive the offer as "fair and reasonable". Will they have the balls to say "fair but no reasonable in lieu of any other offer"? Given the company has no need to gibe itself away for a song (other than 1 founder director apparently) I am hoping that for once the insto's have the balls to turn a quick profit away in the face of longer term profit. NZ's Fisher Funds have made strong noises - I hope other Ozzie fund managers have the minerals as well.
Fascinated to see whether the "independent expert" can look beyond its fee - which unfortunately is arranged by our pitiful directors who for some reason feel an urge to sell us out - yet can point at no clouds on the horizon to justify doing so - just another 100% profit increase!
SC
PWK Price at posting:
$6.17 Sentiment: Buy Disclosure: Held
