afr article - babcock and brown/cdr
AFR, 29/6/05, p. 48 Under a new Commander
main points are:
-is in effect is controlled by Babcock & Brown
- "The main thing is this is a very low-risk transaction which could deliver big returns," a broking analyst said.
-Karl Siegling, of Cadence Asset Management, said the transaction had been done at a very low net present value for PBA.
-Commander's chief executive, Adrian Coote, said the deal was low-risk because of the security over the company's assets and the fact that the working capital was only payable in tranches in return for the company meeting performance hurdles.
-A former major shareholder in the company and provider of technology, Kyocera, has supported the transaction by agreeing to defer payments due from PBA and make them subject to delivery of technical enhancements which will allow Commander to offer telephone calls over broadband wireless.
-Optus said it would continue the partnership it agreed to in May with PBA to provide mobile broadband internet access to corporate customers. "That deal enables Optus to offer wireless broadband services to 70 per cent of Australian businesses, and allows PBA to tap into Optus's corporate user base," an Optus spokesperson said.
CDR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
