MTU half-yearly shows $277 million of debt. They are going to finance another ~$250 million for the NZ takeover, that brings it to $527 million before iiNet.
If IIN shareholders hold, my opinion is that margins compress in the next 5 years and they lose money long term by holding for CGT relief.
MTU will probably do an equity raising for close to $2 billion to clean up the balance sheet. I think they need to get shareholder approval for that much seeing it's going to be a bit more than 15% of shares on issue. It's incredulous M2 are trying to takeover a company worth almost the same as what they are now, current shareholders will see near 50% dilution right about where margins peak.
IIN Price at posting:
$9.80 Sentiment: None Disclosure: Not Held
