of course do we really know if CPB will in fact buy the 4 mil shares ? they may want to get a seat on the board before buying more.
They also may look for a placement, especially if there is an acquisition, and maybe they may want to buy selected divisions from CHL which they are interested in.
lots of alternatives, but the fundamentals are in place. If the sp is sold down after going XD l will certainly look to pick up a few, but we may see CPB come back to buy.
Thanks for all the info, you are a mine of information. No doubt some news will emerge when AGM comes up. Otherwise fairly quiet just for the moment.
Actually, one point l would make is that they are siiting on 6 mil cash earning 4% whilst paying 8% on the 8 mil debt, which is not efficient - could save 200k pa interest if it were efficiently run, but l know there are constraints. However they should be able to borrow more cheaply than that.
LZ
CHL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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