If Cosette were to be successful in its current bid it will get all the cash on the MYX balance sheet for free.
I am talking about approximately $140m in actual cash. I reckon it belongs to us shareholders. Its about $1.60 per share, I know I could use the cash. Maybe MYX can give us a dividend next month.
And I say this because the $140m cash does not earn the profits apart from some paltry interest income. If the cash was not there Cosette would still make the same profit it is expecting from the actual business.
The other way to look at it is that the Cosette purchase price is not A$672m but lower at A$532m which makes the deal even worse for us shareholders.
It's not stealing but it does not feel right. I have done a very rough forecast (so please do not rely on it).
If I have gotten this completely wrong can someone from Mayne Pharma, who is monitoring these comments, come on and explain why I am wrong.
Cheers.......D
All in my opinion. The above is not financial advice and should not be relied upon.
MYX Price at posting:
$7.23 Sentiment: Buy Disclosure: Held
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