As the backslapping continues on the reported sale of "Arrium Australia", have any of our politicians at any level of government and political flavour, stopped to consider:
Were options of refinancing ever seriously considered?
Do we even know the selling price?
Do we know its "fair" and do we even care if it's not and just a fire sale?
Is Arrium Australia been given away for free? (if you take into account 1.8 billion of tax credits)
With no public reporting of financials until November 2018, where is the published feedback from ASIC and FIRB, that those agencies designed to protect the interest of stakeholders including members, conducted the required "checks and balances"?
This booming business should never been put up for sale, and of course the 2 overseas bidders are aware of the administrator's fire sale mentality (to ensure fees and commissions to "stable mates") and have lodged low ball offers, that the bidding process has raised to a mystery sale figure, that in November 2018 will be 100 percent too low.
Extract below from Report to Creditors (dated 26/10/2016):
6.1.3 Preparation of information for sale and recapitalisation Due diligence information has been compiled by all Divisions for inclusion in a virtual data room to be accessed by potential purchasers. Due diligence information covers operational information for each of the core business units as well as: financial, tax, environment and property, legal and company secretarial matters, intellectual property, litigation and disputes, information technology, human resources, safety and insurance.
KPMG was also engaged to assist in compilation of financial data books for each of the Arrium Group Companies' business units, which have now been completed. These financial data books include budgets for the year ended 30 June 2017 ('FY17') and forecasts for the years ended 30 June 2018 ('FY18') and 30 June 2019 ('FY19') which have been prepared by the businesses'
ARI Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
