Thanks for that. For 2015, we are going to get about 8 months of cashflow from NZ and a full year from the Bentley data centre. This should add at least $6m to OCF. The new customers they have connected in 2014 via spending of $18m of core capex in 2014 should also contribute.minimally an extra $6m in OCF. For conservativism, I expect no increase from the internet division, but I really suspect this will surprise on the upside.
All in we are looking at an extra $12m to OCF, and this is really ultra conservative. As I have stated, Spencely must be confident of his cashflow for 2015, otherwise he would never talk to Clive Stein.
The merger makes absolute sense, but the worry is that Spencely will overpay for what is really an inferior business.
I do think that moving forward, we should be factoring decreasing margins as the market continues to consolidate and the fight for new customers start to heat up. Teoh of TPM is a formidable opponent.
VOC Price at posting:
$5.74 Sentiment: Hold Disclosure: Held
