Today's Fin Review has GMG ready to announce the capital raising maybe even today.
Main points
$1.2b to be raised $0.5b to also be raised as preference shares to CIC Total $1.7b
Expected that Greg will participate to prove the GMG model of owning, developing and managing still works.
UBS who are not part of the team working on this still think GMG is risky and state the bleeding obvious that the raising needs to both achieve the effect of deleveraging and provide enough liquidity.
Looking ahead liquidity should improve just by the market opening up again for asset sales if they are needed to fund new developments. Developments coming back on line anytime soon means higher profit margins but does drain liquidity.
Anyway looks like the sell of yesterday was on this news.
GMG Price at posting:
44.5¢ Sentiment: LT Buy Disclosure: Held
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