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That sounds good and all, but realistically they'll have to...

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27/02/18

17:16

Post #: 31388002
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Originally posted by DeltaHedge ↑

You've mentioned before they should keep NZ and i agree.

Realistically, Vocus have two options:

1. Try to sell NZ
2. Cap raise

I think right now option 1 is riskier, if they don't get the sale price to pay down enough debt and fund the ASC, then they are forgoing a profitable business segment in NZ and still opening themselves to debt covenant issues. Even though with option 2 there is a risk of minimal subscription to shares, i think most investors and instos will see the light at the end of the tunnel and cough up the $150m. What's your thoughts?

TLDR if they do a cap raise now, they will have $150m in 4 weeks and will be clear sailing (and i would actually buy in) v the unknown possibility of a buyer not offering $450m + by June 2018.

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That sounds good and all, but realistically they'll have to offer the shares at what? $2.00? The instos will not like that one bit! So I doubt it happening. If the SP was somewhere between $3-3.5 maybe they would've had a chance to offer CR at $2.5-2.75

VOC Price at posting: $2.41 Sentiment: Buy Disclosure: Held
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