CNP 0.00% 4.0¢ cnpr group

possible recapitalisation scenario

  1. 6,716 Posts.
    I have been doing some calculation about possible Centro recapitalisation scenarios and it does not look pretty.

    They need about $1bn in new capital to get back to a reasonable debt/equity ratio for a property entity. In round figures.

    Current market cap for CNP is less than $250 million.

    Issuing $1bn of new shares are current prices would dilute current holders to a total of a 20% holding in the recapitalised entity.

    From that starting point, you would be damned lucky if the shares were ever $1 again even after 5 years.

    I am holding mine but I can see why people wouldnt want to.
 
watchlist Created with Sketch. Add CNP (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.