Here's what UBS is saying about Centro in their newsletter to investors:
Centro Property Group As at 14/12/2007 (the last day prior to the Centro announcement) the PSF held a 9.4% exposure to the company. In addition, the PSF had an exposure to Centro Retail Trust of 4.4%. At that date, our total exposure to the Centro Group constituted our second largest active position within the Fund. UBS met with the CEO, COO and Company Secretary of Centro on Tuesday 18 December. The key points advised to us during that meeting are summarised below: • Centro has obtained an interim extension until 15 February 2008 on $2.7 billion of facilities maturing prior to that date. • The funding extension will allow Centro to undertake a review of options available to secure the long-term capital structure of Centro and its managed funds and to reduce the current gearing levels. • These options may include asset sales, joint ventures and equity injections We are regularly updating our going concern valuation for Centro, and our assessment of its long-term viability forms the basis for all buy or sell decisions in the stock. Given significant share price weakness on the 18th of December, we added to our position, as we believed the current market price (18/12) implied no value for the funds management business and reflected a significant discount to the latest quoted NTA of $2.29.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
