I also was wondering about the timing which seemed to catch even VTG by surprise as they had recetnly bought new stores and spent capex on ICT. reading through the print and inbetween the communications from TLS my veiw i that they are wanting this transaction to do the following:
1. Service/people - ensure they have the people availible to support their customers despite the T22 redundancies in their core business. the Telstra shops can be flexible to be both face to face as well as on phone or online support people. 2. 5G - will bring new sales opportunites that will need to be shown to customers. as TLS have planned the best network they will want to leverage that. 3. values - my take on what is happening here is that there is too much confusion and deception in mobile plans. while they have simplified, maybe some stores have rouge elements and TLS is taking the flack. 4. $ - the profitability of the retail stores seems undervalued by the market so why not buy them and cash in. (issue here is that under TLS the profitability may slip unless they can leverage the staff in ways the franchisees cant (see point 1)
VTG Price at posting:
94.5¢ Sentiment: Hold Disclosure: Held
