VOR (ASX) Ann: Operations Update

Originally posted by N. Tinkler ↑

Maybe I am looking at the glass half empty but that announcement has many indicators that things aren't as rosie as a lot of people on here believe.

- SREI ATM roll out has been suspended for 2-3months and whether they commit to it is very much up in the air
- buy out of the 75% is in danger. CX partners will never get $47mil and TSN will never be able to fund it.
- Transaction volumes were down and costs were up and will still be a while until things hopefully recover.

If the purchase of the CX shares doesn't proceed where does that leave TSN and who would want to buy out CX as I believe they have a fixed exit date.

Im not here to down ramp, just throwing it out there.

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No worries Tinkler, it is important to discuss so no offence/down ramping being taken by me.

I agree that the business was negatively affected. However, I see that as short term and absolutely not a surprise - I was only surprised that only 2% across the business. Costs up was also in line with my expectations.

As I mentioned earlier, I believe SREI will proceed .. .they are just being cautious while they wait to see the impact - again no surprises there and perfectly logical.

I don't actually reckon the 75% is in much danger ... the price MAY be affected (although I suspect not) but I think it will progress ... this is what the management have been working towards for a long time and the curve ball thrown by Modi in November will only delay things IMO ... already normality is returning (remember those figures given yesterday were only up to December ... as we know things have improved dramatically since then). I also have heard from other sources that many overseas banks are now very keen to lend in to India as they see it as a high growth market ..... consequently, I don't sse finance as a major hurdle except for a delay as any lender will want audited transaction figures to show that normality has returned before they hand over any cash.

All just my opinions obviously but I think that too much fear has been created here over the past few weeks and so panic arose based on historic information ..... I am hoping for an update mid February re CX and I expect this to be an announcement of exercising the extension ... which makes perfect sense to me and then we can proceed with the acquisition based on normal figures instead of the unrepresentative figures from November & December.

MartyW