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.
share price will plunge if takeover succeeds
-
- There are more pages in this discussion • 13 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add GWR (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
7.7¢ |
Change
-0.002(2.53%) |
Mkt cap ! $24.73M | |||
| Open | High | Low | Value | Volume |
| 7.6¢ | 7.7¢ | 7.6¢ | $15.85K | 208.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 138000 | 7.7¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 8.5¢ | 200000 | 1 |
View Market Depth
| Last trade - 13.09pm 26/07/2024 (20 minute delay) ? |
| GWR (ASX) Chart |