CJ and Bris I agree that the share price is undervalued at current levels and I also agree with the sentiment that we appear to be selling of an underperforming asset, however.. I think the major growth area in the coming 5 years will be the generics business and with a reduced cost platform I think it will be a winner. However they will need someone to supply the market with their products and we appear to have done a decent job at sewing that up.
One thing I am certain that we wont see is a return of capital from this deal. Even if there is 150 mil left over from repayment of debt. To be honest I would rather see a share buyback at these prices.
Now the eternal question do you hold or sell if the price gets back toward 60c.
Has anyone done any numbers on the potential ongoing revenue for the new entity?
IE what would distributions be likely to be?
SIP Price at posting:
48.5¢ Sentiment: LT Buy Disclosure: Held
