persistenone,I bought as soon as I had digested the result and...

persistenone,

I bought as soon as I had digested the result and found it exceeded my expectations, and that the transformation and deleveraging was intact.

- Stabilisation in underlying EBITDA
- Accelerated cost reductions
- Lower capital consumption than I first thought
- Further assets sales on the cards
- Confirmation of >$100m debt reduction per annum
- Confirmation of lower funding cost due to debt matrix

All my boxes were comprehensively ticked on the day.


I suspect that at some stage over coming months, the Warburg Pincus stake might find its way to the market, which would provide another investment opportunity for us all.

But in the meantime, the intrinsic value of the business is rising and we could spend the rest of our lives for the private equity folk to decide what they want to do.

And my experience with these sort of "perceived overhang" situations is that one is best served ignoring them and simply buying the business regardless and if the the selldown does indeed occur, well then that simply provides the opportunity to add to one's holding.

Absent any selldown by PE, the downside, I think, is quite limited.


Cam