If MFS does sell a majority share in Stella, analysts and shareholders are going to be better placed to value MFS. So if they sell 60% of Stella for $600 mil for example (just an example guys - it could be more it could be less), they will value the remainder of Stella as being worth $400 mil.
It's all very well people saying they could buy the entire business for under $500 mil today, but that's a bit stupid really, because buying an entire company would require shareholder approval and sense says that even if they removed the company from suspension, if someone wanted to buy the entire company or a major shareholding, at these rock bottom prices, even with alot of sellers ready to exit, the SP would still be pushed up massively, and then it woudn't be at fire sale prices any more.
I do wonder what proposal CIY put on the table over the weekend that was so much less palatable than selling part of Stella. That said, there is obviously some value to the financial services side otherwise CIY would have just taken their original offer and ran.
- Forums
- ASX - By Stock
- stella majority holding price
MFS
mfs limited
If MFS does sell a majority share in Stella, analysts and...
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MFS (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CC9
CHARIOT CORPORATION LTD
MD - Shanthar Pathmanathan, Geologist - David Trabert
MD - Shanthar Pathmanathan
Geologist - David Trabert
SPONSORED BY The Market Online