Everyone here seems to be praising EMG and saying the company won’t go bust cos they have EMG on their side… EMG have been looking for an exit for some time and nearly got a deal done with Sev.En before they got cold feet. EMG has already stripped huge sums of money out of this business..
Recall EMG owned this entire business before buying Curragh and selling down 20% via IPO in 2018.
in 2019 they (CRN) paid out US$700m dividend which EMG’s share was 80% at the time
in 2020/21 there were two capital raisings. EMG didn’t participate in the first and got diluted down to 56%. EMG participated in the second to the extent to keep their ownership at 50.1% (control).
In 2022 they stripped a further US$700m out in dividends (EMG share 50.1%).
EMG have made their money here already (imo). Tried to get a sale but someone looked under the hood. They are a big reason the company is in the position it is today.. they borrowed to pay dividends, during the boom they paid out all free cash flow instead of fortifying the balance sheet. They sold and leased back various pieces of infrastructure and equipment. EMG ain’t coming to save you.
CRN Price at posting:
16.8¢ Sentiment: None Disclosure: Not Held
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