And to end my previous comment: If no other investor will buy...

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MagicSeven

597 Posts.

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22/01/18

11:09

Post #: 30461152
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Originally posted by MagicSeven ↑

Wow! You even can't do a simple part of an investors calculation... I am happy that I am not so "smart" as you are..

4. Purchase Price:

• Cash consideration of USD 250 million comprising:

(1) USD 230 million payable on Completion; and
(2) USD 20 million payable 3 months post Completion, subject to
typical working capital adjustments.

• Assumption of USD 10 million of liabilities in the form of local overdraft
facilities.

• Contingent royalty payments of up to USD 20 million.

So I understand it as a total divestment selling price of 280mn (incl. ALL contingent royalty payments to tgs!) to the hong kong company.

So we have tgs balance sheet which will have max. plus 280mn cash in the end and minus 208mn lower debts but still other liabilities of around 20-30mn..

And it is still not clear if tgs will get more assurance payments from failed operations or if this amount will also flow to the hong kong company..

So in the end we are left with not more and max. around 50mn (=sharecapital) left in cash and a bod/mgmt which have failed in every step!!!

So why the hell other investors should than invest any money in that following tgs company which has just cash but no operations left??? This means dead capital.. with no return "smart friar"!!!

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And to end my previous comment:

If no other investor will buy our shares you can imagine what will happen to our shares!!! They will tumble fast because tgs will be left as a non-operating company.. but their mgmt and bod will get salaries and bonuses min. 3 more years till the royalties are fully paid and than they will close the books and every chapter..

.. but you can dream further that they are interested in existing shareholders..

TGS Price at posting: 4.9¢ Sentiment: None Disclosure: Held
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