AFR article says NRW preferred bidder for BGC, page-14

Thanks Sabine.

I've been thinking about the $190m - why is it mentioned at this early stage? Just 2 facts: "eps accretive" is non-negotiable and we would be talking on $190m in asset financing.

Given buyers haven't exactly been falling over one another to buy BGC, I'll guess that the EBITDA multiple used to calculate the EV will be significantly less than that implied by NRW's market cap (x5-6) - maybe x3 ?

Totally guessing here but for e.g. if BCY had say $100m EBITDA and say EV is calculated at x3 EBITDA, and Net Debt in BGC atm is let's say just equal to the Asset Financing ($190m), then the Consideration would be $300m-$190m = $110m, and NRW would have $190m in extra debt as well as say $250m in new equipment (so $60m in NTA acquired, $50m Goodwill). Could be miles out but still, you start to see that the point is the acquisition might be significantly funded by the balance sheet taking on the $190 debt. Obviously they could do a placement (15% of MCap) without SH approval up to say $140m.

Wide range of options open indeed. How much risk do they (and their bankers) want to take on the balance sheet? More risk, bigger eps benefit short term!