Lol. You guys are funny. Relax. This is good news.
DDR had $30m cash on their balance sheet on Dec 31, 2020 and have had 7 months of profitable trade since then. They might have more cash (less the divs) than that now, I'm too lazy to run some calcs. As fitfunfusion said the release clearly states "The acquisition funding is supported by a cash advance facility from Westpac." so if there is any shortfall it seems it will be filled by that not by a capital raising.
This acquisition looks suspiciously good. Super rough numbers $15m EBITDA with $68m purchase price. They bought it for like 4.5x EBITDA
DDR is on a EV/EBITDA of ~19x (per Koyfin). Unless I've missed something this looks like the steal of the century??
Bottom line though I trust DDR management implicitly, they are as good as management teams come. Looks like they've made a cracking acquisition. I'm expecting a nice share price pop on this steal of an acquisition come Monday. Congrats to the management team and all holders!
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)