SGH (ASX) Ann: Market Update Amendment to Syndicated Facility Agreement

Originally posted by Successwillcome ↑

Nobody was talking about 'top dollar' for the company Steve.

We were talking about future earnings. And yes the escrow money of AUD82mil and NIHL must be included as they are part of future earnings.

There is no such thing as 'top dollar' when valuing companies. The valuation will be based on what the estimated future earnings will be when restructuring and performance improvement plans are completed and embedded. And yes when that is done the one off expenses have gone also which further improves our cash flows.

I hope we can agree that after completing those important future orientated improvements in the business the earnings will be so much better than today. And yes shareholders (current and future) would need to be part in this.

SGH's value is enormous and SGH and our new lenders know it

I think it would be wise not to over complicate things here. Let the experts value the company. Experts employed by SGH and our new lenders.

Not the 'experts' on HC

Wait for the difference when we have had a clear run after the implementation of the restructuring and performance improvement plans. Then you will see how the real world works.

Why do you think our new lenders think it is a worthwhile cause to complete the improvements to the business as announced Friday?

Yes. because it will make this business healthy again with healthy cash flows.

That will be to the benefit of ALL stakeholders.

So would I sell my quality SGH share for $0.13?

Absolutely not

Please note my emphasis is on the future not the past.

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You really have no idea what you are talking about.

When valuing a company there is a range of possible valuations based on different assumptions. steve068 was referring to Anchorage pushing for a lower valuation so as to capture more of the value and also pointing out that you are expecting them to value the company higher which will give current pre-diluted shareholders a higher value. His post makes complete sense. Unlike yours.

More importantly...'top dollar' does exist. It is what SGH paid for Quindell. A valuation that the 'experts' determined was fair. Look how well that turned out for SGH holders.