GWR 3.49% 8.3¢ gwr group limited

share price will plunge if takeover succeeds

  1. 2,739 Posts.
    lightbulb Created with Sketch. 2
    The thing to consider is that GWR is a debt free company with a market cap and Enterprise Value of $200 mill right now.

    FAS needs to fund this takeover and will be in debt to the tune of $200 mill plus probably.

    So the new entity - post successful take over(god forbid) has to pay an interest bill of $16 mill per annum and the debt also means the Enterprise Value now becomes zero - a loss of $200 million in Enterprise value.

    Do you know what the share price will become post takeover -
    look at Centro's shares for an idea !

    To the GWR shareholders thinking of converting from GWR to FAS ..
    from success to certain failure .. please rethink.

    At least wait for a cash offer for your GWR shares - as FAS's shares are just pieces of paper.
    And you dont want to be part of the inevitable share price plunge post takeover.

    Dont be fooled.
 
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Last
8.3¢
Change
-0.003(3.49%)
Mkt cap ! $26.66M
Open High Low Value Volume
8.3¢ 8.3¢ 8.3¢ $487 5.872K

Buyers (Bids)

No. Vol. Price($)
1 26528 8.0¢
 

Sellers (Offers)

Price($) Vol. No.
8.3¢ 99999 1
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Last trade - 10.04am 05/07/2024 (20 minute delay) ?
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