Dom 2007, yes its a low ball offer ..... or is it? something to...

Dom 2007, yes its a low ball offer ..... or is it? something to consider

1/ SMART is an aging model with aging plant and equipment.
2/ the contract is not as exciting as it was 6 years ago and apart from the flaws its also got less time to run 25 yearsdown to 20 years now.
3/ reshaping the site work mix has not been without its problems and has impacted its profitability.
4/ Jim's valued the place a 1 mill per site* .he's proven via his latest network that it costs far less to start from scratch. so why not just build 50 new ones? his latest venture has about 15 sites and he doesnt seem to have much trouble getting supply (including "overflow" from suncorp) and his staffing levels are about right. he was/is a popular guy with the blue collar set.
5/ from memory AMA bought smart with/for a multiple of 25! included in the buy was a 25 year contract. so lets call it 20 multipule now. 20 multipule x ? profit = buy price. 50 mill might be over the odds (shrugs shoulders)

6/ For me, AMA don't need to sell, the reshaping is going to a plan, debt is reducing and is only about 3 months trading $$ now. some minor tweeking of the loan to push it back over 5 years and the worlds a great place. I said before that Suncorp should refinance the lot. and if the CFO can't get a deal done before April, (june at worst) they need a new CFO.