Share
10,756 Posts.
lightbulb Created with Sketch. 484
clock Created with Sketch.
30/08/19
22:06
Share
Originally posted by WayTooLong:
↑
GXY paid $20 million in equity in A40 for the box seat in a relationship with A40. I don’t think they actually cared about the potential future value of the equity stake. It looks like they were positioning themselves among the large A40 shareholders as a potential partner. Wolf in sheep’s clothing.... GXY want the tennants and the plant. They forked out another $40 million for the debt. Own the debt, control the assets. They’ve effectively taken control of a $120 million company for $60 million. Without a messy takeover bid or overpaying. They’ve now almost doubled their output capacity. The $40 million is secured against plant and equipment. So they will get that back one way or another. The other $20 million will be the “cost of doing business”. The $40 million they funded it with was using their own debt facility, which I guarantee isn’t at 15% p.a If they really wanted to make work for A40, why wouldn’t have they given them a lower interest rate?
Expand
then why are the A40 receivers putting Bald Hill in C&M is what i don't get. I just hope this plays out in GXY's favour rather than some collosal f up.