1. G.R doesn’t like to publicly give out numbers on potential asset sales, as this tells the market something..which in turn might effect the negotiations.
2. After the recent CAF sale announcement of a 10% loss to book value , one must get the impression that the bankers and relevant parties associated with the deal are happy with the sale ;thus suggesting that some of the Aussie Portfolio will be sold at book value or better, as there is a lot of demand for the Aussie Assets.
3. This 10% loss to book value is also significant because this tells us now that their won’t be a fire sale of assets as suggested by some amateur market commentators(as a number is posted on the Chalkboard) and banks and relevant lenders are more than happy to wait for the right deal.. So to all the journalists/writers/reporters and Market analysts stop mentioning Fire Sale as this is out of the question now.
4. Also Graham Terry mentioned that the Aussie Assets are in very high demand and also mentioned that the group is not interested in selling them individually but if they were they would sell them in a week.
5. We might loose a little bit of value on the U.S assets but over the long run G.R is certain that we will get the value back and more. Which is common sense thinking because that’s how you look at a business i.e. The long run.
If there are many options on the plate for Centro, then all this means is just to wait for the right deal or to wait for the right timing to execute these deals.. Yet market commentators love to speak doom and gloom on a company as this is considered entertaining i.e. more newspaper sales.
Its obvious these market commentators are just guessing as the frustration of not knowing what is happening can suggest a possible story made up of lies and b.s and more b.s... Funny thing is the average Joe who reads the paper starts believing the dribble….LOL
So Possible Outcome is
1.To sell some relevant interest in both caf and cawf and maintain management rights;which is currently under way.
2.New equity through an investor
3.Banks may have to do recapitalise the business themselves and become partners with the shareholders.
4.It's possible to convince the Syndicate Holders to buy some of the Australian centres.
I think this might give us a further extension come December.
According to G.R the banks are looking to 1. To trust us. 2. Make sure where transparent 3. Running the assets properly 4. Running the services business properly 5. Keep our heads down and do our business correctly and given the above is achieved then he’s comfortable that they will work with him.
The Assets in both Aus and the U.S are excellent long term assets and the beauty about it is they can offload it anytime especially in Australia for a reasonable price. This is one of the main reasons that keeps me in the cnp camp.Knowing that the options are there.. i.e Take your time and choose carefully!
All in all we will SURVIVE and we’ll come out stronger and more aware of what happened back in Dec 2007 …No doubt!
Looking forward to Friday…
CNP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
