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09:37
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Originally posted by volcanochemical:
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My view is that TLS started their buy back process at both ends - the small licencees as well as Vita to see who would take the lowest profit multiple first then use that outcome to argue that this is the "market price" as i suspect all licensees had some exit clause that allowed TLS to terminate early by some process that recognized some sort of market value as a guide/benchmark in negotiations. I am actually encouraged by the fact that those deals were done pretty quick but i have not had the time to look into the TLS documentation yet for any comments on the capital cost to buy them out. in any case the two scenarios remain for VTG - ride out the contract and then hand back the stores or accept an early termination offer - the latter which remains the most likely given what TLS want to do (T22 is not T24 or T25). the other positive i think is that TLS shareholders seem supportive of the T22 strategy and profress as well as other actions taken (the towers sale, buy back announcement, medical acquisition etc) which should help TLS get this deal done without much scrutiny from shareholders. in someway you could say the lift in TLS share price yesterday in response to the FY21 announcement and outlook statement has opened the door for TLS and VTG to complete the deal ahead of the VTG earning announcement on 20aug. Time will tell.
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Well the ideal outcome would be to announce a deal and wrap things up in that earnings call.....if not, Telstra's commentary around mobile handset sales don't look great for Vita's results
