There is one problem with an asset sale vs company sale that hopefully the players have thought about.
As of last years annual report the company had non-current assets of $27m. If we then go and sell Karlawinda for say $80m in line with your estimate, are we liable for tax on a $53m "gain"? The company does have accumulated losses of $17m but can that be allocated towards a capital event rather than income generated from operations?
Therefore would we pay corporate tax of 30% on full "gain". If so that takes about $16m off the valuation and leaves cash to return to shareholders only 10-15% above current MC levels. Not a lot of bank to be made?
I am not an accountant, so if any on here would like to throw their 2c in that would be much appreciated. Above is all just my opinion and musings.
Ann: Results of Meeting, page-85
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Last
$6.45 |
Change
-0.050(0.77%) |
Mkt cap ! $2.435B | |||
| Open | High | Low | Value | Volume |
| $6.52 | $6.52 | $6.33 | $6.623M | 1.029M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 360 | $6.44 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.45 | 5940 | 1 |
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