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Yes I agree that existing shareholders benefit when company...

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counterpuncher

52 Posts.

16/05/17

01:04

Post #: 24705849
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Originally posted by bug1 ↑

Companies cant just raise money because they want it, they need a reason, they couldnt have raised $800m to just save for a rainy day.

Obviously Vocus would have no chance of pulling off a deal like Nextgen now, they couldnt raise that much money with share issue and they dont have debt room to make up the difference, it was a very well timed deal IMO.

I know you dont want to look at it like this, but Vocus got Nextgen for 83.7m shares+$240m, on todays terms thats $450m, to get $96m EBITDA, would that be enough ROIC/ROE for you ?

The more the SP tanks the greater the deal looks in retrospect, its beautiful.

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Yes I agree that existing shareholders benefit when company raises equity at a high share price and then invests it well. Question is 'did they invest it well'? You obviously believe so. I don't know enough about Nextgen to comment.

VOC Price at posting: $2.50 Sentiment: Buy Disclosure: Held
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