Hey octain, that so called cba selling was for Colonial First State Investments.From memory i think cnp holds 25% of cer directly and indirectly roughly 26% through dpf and dpfi.Roughly 31cents holding in n.t.a this is part of the reason why cnp don't want to sell out their holding from cer as they are aware of the value.
What we probably need now is some take over offers from outside firms and these firms will know that centro is a good business and a good manager of malls; but the takeover offers need to offer shareholders some value i.e. taking on these short term and long term debt obligations but if they were smart they would realise that once short term debt is looked after (providing they are fully cashed up) then possibly down the track when the share price is at acceptable levels than they could probably raise some funds via new issue of shares thus lowering gearing levels.
There is some big consortiums out there that could swallow centro and they will also realise that shopping malls is a good safe investment as long as they can take that step by 1. providing/offering some equity into the business and 2. looking after current and long term debt by the methods explained above.
Keep in mind centro don't have a problem paying off the interest; what we need is some partners to help fix up this short term problem and make bankers happy.Thats why a longer term extension in this environment is the way to go.
CNP Price at posting:
7.7¢ Sentiment: LT Buy Disclosure: Held
