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KerrodT

326 Posts.

54

27/04/15

19:56

Post #: 15165842
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Originally posted by Cyph ↑

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.

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If you're a current holder of IIN then I guess you will be selling on market soon to avoid these catastrophes that you predict above.

IIN Price at posting: $9.80 Sentiment: Buy Disclosure: Held
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