I agree some of the maths here isn't quite right. Don't forget that the original purchase price included $115 million of debt and the sale price includes only $89 million of debt. That improves the picture by $26 million.
The press release says they earned an IRR of 5.4% on the sale before transaction costs. The only transaction costs I can find are the $18 million on the purchase as they state there are no transaction costs on the sale.
It does mean a small loss on the sale. However, I don't think the sell off was related to valuations as they seem to be holding up.
I think its more disappointment that they have $900 million of exchangeable bonds and they are only dealing with $300 million of them. When your market cap is only 1.6bn that other 600 million could be highly dilutionary to existing shareholders. Until they sort this exposure out the short sellers will rule. Still, they have plenty of time to rectify the situation. I expect we'll see more sales over the next year.....
MCG
macquarie communications infrastructure group
