re: Ann: Acquisition of Wizz Communications b... Ivanovich on...

re: Ann: Acquisition of Wizz Communications b... Ivanovich on the cash script mix you've described, on my calcs the acquisition is at least 15% earnings accretive on estimated FY10 figures (estimated EPS of $0.017) or 24% accretive on FY09 confirmed figures. I have the acquisition adding close to an extra .027 on EPS). So I suppose you could say that assuming almost negligible growth EPS for FY11 should come in at around .02 - in saying that I am estimated organic revenue growth of circa 30% and given the scale / fixed cost theme, you would expect earnings to be even higher.

I assume the script was issued at 14.6cps on account of VWAP calc - the price has run hard recently. You would expect the dilutive effect will even be more minimal for any future acquisitions given the expectation the share price should hold up.

On another note, I see iinet has just announced an acquisition. The announcement seems to be alluding to the fact the acquisition was done on the cheap at an EBITDA multiple of 5 times. Compare that to 2.8 x!!!!