Ann: Divestment of 80% of Morrison Securities, page-38

"Mauombo - I dont really know where to start. There is a lot of investment needed to take Morrison's further. So the purchaser should then be able to do a straight deal payable in a few weeks.
Why do we not have enough to invest in Morrisons ? - we have $5 million free cash and we are generating $1 million Ebitda each month.
So what is the great imperative we are investing in? Hopefully not more News media that has earned zip.
I am frustrated as I dont see the grand plan."

Boy, tough crowd in tonight.


Looks like they are about to sell one-sixth of the company's earnings for a valuation equal to nine-tenths of the Enterprise Value.

Would that all the companies in which I invest did likewise; I'd love to be frustrated in such a manner.

Viewed another way: how long would it take and how much shareholder capital would need to be invested in order to get Morrisons to be recognised by the market as being a $50m business [*]?

[*] And that $50m valuation is in current money terms and needs to be grossed up for the shareholder capital that needs to get it to that $50m figure.

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