DVA 0.00% 77.0¢ diversa limited

Ann: Financial results for the year ended 30 June 2016-DVA.AX, page-3

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  1. 618 Posts.
    lightbulb Created with Sketch. 14
    Looking at financial reports for a company that's been listed for 2 years and comparing them to a company that's been listed for 13 years and going "this ones a dud compared to the other because one is making an EBITDA profit and one is making an EBITDA loss" isn't exactly prudent IMO.

    Whilst I think the deal appears pretty one-sided for OVH on first look, the merged entity provides a more complete solution and cost synergies.

    The market has already identified which business has far more capability for growth, and if anything, the investors that should be dicey on this merger are the OVH holders.

    OVH could have organically grown to a the point of the merged entity without buying into DVA. Its not exactly rare in this sector for companies to balance their short term profitability for the ability to grow long term, and OVH have kind have gone against their own usual ethos with this.

    I guess everyone has a vote and we'll see what happens, but I honestly don't see much resistance, if any, from the DVA side of things.
    Last edited by jdz101: 05/09/16
 
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