$7 per share seems cheap when you consider the previous history and future likely NPAT growth (forget phoney EBITDA which is even higher). The spare network capacity + internet video driven demand for capacity means that the growth we've seen in the last few years isnt a peak by any means - an extremely high forward PE ought to be imputed into any offer.
PWK management havent put a foot wrong ever to my knowledge - they clearly know the value of PWK and its future business opportunity. Pre bid Market caps suggest PWK would be just 1/4 of a merged entity. I simply dont see PWK mgmt selling out that cheaply (or at all)
I dont know much about SOT - but a review of their annual result presentation doesnt excite me at all as a business I'd want to be part of. They cant afford PWK for cash so a large amount of scrip will no doubt be involved.
Tuesday's announcement will be fascinating. Looking forward to the offer and PWK management's take on it.
PWK Price at posting:
$5.99 Sentiment: Buy Disclosure: Held
