While I somewhat agree with the spirit of this post, the numbers are highly skeptical as it all depends on how many shares there are in the company - so $1 price has little meaning. The dilution and price has little meaning as they can, for example, say forgive $700m debt in exchange for 90% of the equity in the company. The price of the shares plays little part. If you are saying that the $1 price is with the current total shares (about 350m), then I think that would mean that the new owners would own almost the entire amount, considering the market value is about $35m.
I think they (hedge funds) want to make as much money as possible - that is the business they are in and the leaders of the hedge funds get paid massive bonuses to do this. But they also have to be a little realistic. I think the number one concern for the SGH BOD is the staff - employees would be the #1 consideration in any deal. There is a point where the funds can make heaps of money and the company can still be successful (after a bit, or alot, of work). Once the capital structure is finalised, however that will happen, it can only be a good thing for the employees and the company as a whole. This needs to finish ASAP.
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