Data Centers (10 x EBITDA) and NZ Operations (8 x EBITDA) as non-core assets could be sold for $500m.
That would bring down Net Debt down to $500m with capacity to fund the ASC Capex.
EPS may take a -15% hit but that would then have VOC trading at 10 PE and within safe net debt territory to adequately fund ASC (which would eventually make up that 15% earnings hit in time theoretically).
It was written Private Equity pulled out as they didn't like the future board direction which to me infers significant operational emphasis changes, possibly like the above.
To me the big choice announced tomorrow will be either selling NZ Operations or cutting the dividend, one has to happen.
VOC Price at posting:
$2.62 Sentiment: None Disclosure: Not Held
