I was just thinking if worst comes to worst and we do drop to $1, maybe that will be enough for the company to buy back shares.
At $1 they could buy back virtually all the scrip issued to Zinifex holders for around $1.5-$2billion.
Now the cost to OXR in dollar terms would be effectively $500million to get a hold of Century, Rosebery, Avebury + the exploration assets.
There's no way OXR could have bought those assets for such a price given that ZFX had the $1.5billion in cash.
Now if we get to $1 that will be the deal of the century because OXR will have gained all that for only $500million.
Heck even at $1.50, that would be about buying ZFX for $1-$1.5 billion or so.
Forgetting about the share price destruction for Oxiana holders but if it were to play out we'd be back to about 1.5billion shares with the same assets - minus the $1.5billion in cash.
If the forecasts are right and the company achieves the $1billion profit in 2010, then that on a 10x earnings would imply a $6.66 if all those shares are bought back.
I guess the quicker it drops to $1 the better for OXR holders in the long run.
Maybe Owen did a double cross on Michelmore?
OH GAWD....I must be delirious and hysterical
:D :D :D
- Forums
- ASX - By Stock
- OZL
- theory...
theory...
-
- 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 OZL (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online