I don’t get it, MYR reported EBIT of $162.7M in 2024. The pro-forma effect of the transaction is EBIT of $152M so earnings erosive. Why then sell half the company for $82M cash of which only about $20M goes to current owners via the dividend and the rest is retained by the company so will effectively be half retained by the purchaser. Solly has been planning this for a long time so I expected him to strike a good deal for himself but this looks a bit too good at first glance. The market cap will only double if the share price stays at the same level. Don’t like it at all I have taken my profits on MYR and feel quite comfortable in that decision - good luck to all others & I sincerely hope I am wrong and MYR share price continues to do well
MYR Price at posting:
95.5¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)