The acquisitions and expansion to date all have a profit guarantee attached to them, meaning, exactly that. The initial profits from the subsidiary businesses gets weighted so that the parent company is paid the guaranteed amount and any earnings above that are split on a 60/40 basis which to date, the two Singaporean businesses should outperformed.
If this model is consistent for all future acquisitions, it is as minimal risk as you can get, they are, after all, purchasing part ownership or established profitable businesses. Each acquisition to date has been on extremely favorable terms with really short ROI periods.
Ci1 will do whatever they need to do to accelerate growth, revenue and profits. Which is what they should be doing because the market has presented them with such a great opportunity to do so.
They have executed to perfection to date and I'm sure any future acquisitions will only add value!
CI1 Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
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