Mornin' all. I have just got back from an early breakfast meeting so I'm just getting up to speed on what is going on. Looks like we have some movement at the station.
Firstly, just a quick recap for anyone new:
Right from day 1, Centro have taken a 3 prong approach to resolving our short-term problems: sale of CAWF (Centro Australia Wholesale Fund), sale of CAF (Centro America Fund) and an equity injection. To their credit, they have not deviated from this plan.
I have been on the case researching CAWF, the Australian assets. We now know that Centro has decoupled some of the individual assets from the fund and they are (very sensibly) selling them separately. This is what I have been posting about and what has been in the media up until today. I have no idea whether the media is using HC as a starting point for research BUT as I have said before, they could easily verify the details by ringing Jones Lang LeSalle.
What we have seen today in the AFR and other places relates to CAF, the US assets. I have been unable to do any covert research on this because all of the action will be taking place Stateside and we are not connected well enough to know where to start. In the last ann on the 8th May, Centro promised an update to the situation with CAF within a month, which means we should expect to hear something soon anyway.
As yet, we have heard nothing about an equity injection. I actually remain sceptical as to whether Centro will need to go down this path BUT if a deal under the right terms arose, I (as a shareholder) would be happy to support it.
A takeover is still a possibility, but I'm struggling with how a suitor could possibly offer terms that ALL shareholders would agree to.
As to whether CAWF and CAF are going to sell for book (carrying) value is unclear. CAWF would stand a better chance because of the economic situation in Australia and the high demand for quality assets. CAF is less clear BUT with pressure not being applied from the banks and an extension of debt towards the end of this year, we can assume that they will be holding out for a decent deal.
Either way, with the end of month deadline almost upon us, we should reasonably expect a 'big' announcement of these and the other matters I have previously outlined very soon.
Let's hope they move on the front foot and do it today or tomorrow. Let's also hope they use this as an opportunity to prove (by actions rather than words) how much they have achieved in the last 5 1/2 months.
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
