One things for sure, AIO has briefed holders that they have few offers under consideration and are looking at a closure by end of this financial year. So one can expect a similar sort of run as well, if not better.
Just in early March, Mac Comms Group (MCG) was sitting at 87c & rumours were flying all over, with their board in denial of such proposals. Well thats changed today for MCG holders with the $2.50 offer. Atleast Asciano shareholders aren't in the dark.
IMO, its a good time to take up position in AIO & look fwd to the buildup in the next 5-8 weeks time.
By end of 2008, AIO had * Net debt of $4.592b * Net Assets worth $1.75b. * Current mkt cap of $621m * Revenue: $1.494b * Ebitda: $341m * Debt/Ebitda: 13.4 times (means high debt & low earnings)
Current SP doesnot reflect the overall value of these assets. Hence the need to montise their assets by selling off either their ports or rails segment to reduce this huge pile of debt.
Interesting times ahead for them.
AIO Price at posting:
73.6¢ Sentiment: None Disclosure: Not Held
