EHE 0.00% $3.08 estia health limited

The AFR is at it again today. IMO the Aged Care business is not...

  1. 521 Posts.
    The AFR is at it again today.

    IMO the Aged Care business is not broken (far from it), the industry business model likely needs a little adjustment. With EHE - it is about having an equity issue of $50-$100m.
    Dividends could be cut to retain $20m but will still be paying circa 8% grossed up.

    Write to the MD and ask her to ensure that- should there be a rights issue - it should
    be a full entitlement to shareholders. Furthermore, shareholders should be given the
    right to apply for more than their entitlement - the shortfall, if any, should be directed towards shareholders and not to underwriters.

    And - a takeover bid is a distinct possibility - the sums works IMO.

    (Xmas is 3 weeks away)
 
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