The banks probably don't want to own 90% of Centro. If they do in 7 years time, it is effectively in receivership and I assume they will either sell it off in one lot or in bits and pieces.
I am sure they don't want it and shareholders don't want it. What the announcement does, if I read it correctly, is give Centro 7 years to recapitalise. Someone might knock on the door next month and offer or in 3 years time, who knows.
The problem is that for 3-7 years without dividend few institutions will look at it and the share price will linger. I have concluded that I am better off taking my money elsewhere until they sell off some meaningfull assets and then hop on for the ride.
CNP Price at posting:
9.1¢ Sentiment: Hold Disclosure: Held
