Just listening to TLS investor day presentation. I would suggest the deal with VTG is close and will be over 100m in value transfer with possible over 200m. I see the SP is on the move today as a result. this assessment is based on:
1. TLS needs franking credits to maintain and grow its fully franked dividends so needs earnings per share growth quickly. VTG business can do this. 2. they need to own all TLS shops "yesterday" to increase their hardware margins, expand range, deliver better customer service, integrate the three integrated channel model (online, on phone, in store) customers 3. to bring back into australia offshore support people they want to use the expertise in stores to help to manage the overall cost base. 4. comments by the CFO on what metric they will use for M&A as well as a specific comment that the in housing of retain outlets to cost in the low 100's million
If anyone was thinking of jumping into this stock at a good time it may well be now.
VTG Price at posting:
89.5¢ Sentiment: Buy Disclosure: Held
