Ann: Proposed Sale of Cybersecurity Business, page-110

First 110 Last

Share
Profile

Follow
AUchemist

447 Posts.

168

23/10/20

11:13

Post #: 48329942
Share

Originally posted by baovuong: ↑

- Net proceed from sale price will be less than $25mil, as you have to substract $3mil of related expenses.

- It's cash free and debt free, so VOR has to payoff all debts. From the annual financial report, net current asset should be about $0.4mil.

So after the sale, we have about only $22mil left + TSI.

I don't know much on how they value their TSI's share, so I tend to be cautious here. But TSI's EBITDA for FY20 is only $1mil, and 25% of such business will not attract much attention. To be cautious, I take the worst case of $1mil.

So we have $23milfor 140.56mil shares, that's about 16.5 cents per share.

About TNT's bid, I don't think it will happen, given how the two C10 & DWX have publicly announced their new marriage. TNT will not bid if key personnel in C10 and DWX are not staying.

If key clients decided to walk away (I think some will because the Buyer is a foreign entity),the deal will fail. Such scenario is even worst for VOR's shareholders.

So if I was a VOR shareholder, I would sell every share I have at 16 cent, and find another opportunity elsewhere.

Expand

Pretty silly advice when they just clarified the buyback will be between 18.5 and 19 cents this morning. Please don't take advice from non-holders. As discussed by the long term holders here, the whole story with TSI is not known and all of this looks like a clear play to shake out of as many holders as possible to gain greater control of the company. I will be considering the buyback but I am also a stubbon bastard and want to see what happens with TSI. Are you sure you're not Gary mate?

VOR Price at posting: 16.5¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply