Sorry to spoil your party, but iam not one who will accept everything management say as gospel, we are the owners of these asset and can do whatever suit us best.. Management have lost shareholders 95% of value… should we trust them to make the right decision and dilute us out of existence. Look at Astro Japan Trust. Both GJT & AJA was in similar situation with similar assets & level of Debt back in 2008. Fast forward 5 years. AJA is worth $3.50 today and GJT languishing at $0.75 just weeks ago.
1. If its worth $6 why isn't it the subject of a takeover? The time is ripe now since with equity being issues at $1.50, a price of $1.70-$1.80 (say) would probably do the trick. Give it time. 2. You seem to think that the offer price will be revised upwards. I don't know why you think that when the 2 largest unitholders, representing 27%, are happy with the terms. Its an ordinary resolution so unless you quickly get 3m+ units on your side, you're out of luck. Clearly this re-cap has been in planning for the past 4-5 months, without taking into consideration * the rise in asset price which was reflected in the recent annual report with NTA moving from $3.62 to $4.03 and there is plenty more upside to come. * the Olympic winning bid was not taken into consideration. Management was going for $1.50 regardless… I feel a winning bid would have added 2-3% to asset price as oppose to a losing bid. 3. "The bank will not sell these asset cheap, they are in no hurry to claim their money back". So they are earning a margin of 175 points, and are in no hurry to get repaid. Really? Well, they won’t get their hand on the asset until after March 2014. In this current cheap money environment, when everyone else is getting a good deal. Why can’t GJT 4. Are the holders of Mezz Eurobonds, Convertible Eurobonds and FX loans also happy to wait? I bet they are not. These guys gotta wait until senior loan get their fill. Bad luck to them. But if the senior loan is sorted out. The rest is history. 5. The costs in bankruptcy are typically very high. With 82% leverage the NTA in a bankruptcy situation is basically irrelevant. You'll get nothing. This is management scare mongering tactics.. I don’t buy it.. They were able to negotiate a refinance at the height of the GFC… But is not willing to work on a re-finance deal, rather they want to dilute us out.. what are we paying them for? So initial holders can lost 95% of value? 6. By all means reply to me point by point. But really, you're oxygen is better spent speaking to management or big holders. I have a small number of shares and want the highest price possible. I just believe that the issue will go ahead and that $1.50 is the price. I would seriously question, 8% fixed per annum to the newly issued Eurobond. I would like management to at least attempt to negotiate a refinance for the senior loan, rather than choosing the recap option. Which would dilute existing holders out of existence and In the recent report, management write.. “ as at the date of the report directors believe there are reasonable ground to conclude the senior bank loan can be refinance on term that allow the trust to continue as a going concern. “
I hope the 2 large holder wake up and change their mind.. They might hold 27% of the stock. But there are another 73% that have not made up their mind
GJT Price at posting:
$1.51 Sentiment: Hold Disclosure: Held
