sc100.My thoughts exactly. That phrase from the report is fairly...

sc100.
My thoughts exactly. That phrase from the report is fairly strongly worded and blunt. It is very difficult to see PMP making a takeover offer any year soon given the financial situation. Also the covenants from the recent Corporate Bond Issue quoted below leaave them very little wriggle room. They REALLY are worth a good read.
At the moment the company could really only be on one side of any takeover.
I don't however put any premium in my valuation of the company based on the chance of a takeover. My investment is purely based on the financials rebalancing and the FCF helping that process.
But heck... I'd welcome a takeover.


5.2 Financial covenants
(a) The Issuer will not (and will ensure that any Guarantor will not) incur or permit to subsist any new Financial Indebtedness after the Issue Date, unless, after giving proforma effect to the incurrence of such Financial Indebtedness and the application of the proceeds thereof, the Interest Cover Ratio is greater than 3.50:1.
(b) The Issuer will not (and will ensure that any Guarantor will not) declare or pay any dividend or make any other payment or distribution having the same effect (“Distribution”), or reduce, return, purchase, repay, cancel or redeem any of its share capital or buy back any of its shares (“Capital Reduction”) under Chapter 2J of the
Corporations Act (or an equivalent provision under any legislation in another jurisdiction applicable to that Guarantor) except:
(i) where the recipient of the proceeds of such Distribution or Capital Reduction
is the Issuer or a Guarantor; or
(ii) after 30 June 2014, up to a maximum of 50% of NPAT of the Group (excluding cash and non-cash significant items) each financial year of the Group provided that drawn Secured Debt remains less than 0.6x EBITDA,
provided that, in any case, such Distribution is no greater than an amount lawfully permitted under applicable law.