Certainly a fair concern. Acquisitions in and of themselves aren't necessarily the issue (at least as far i'm concerned), but this particular acquisition is clearly of a different scale and risk profile to REH's previous acquisitions.
I'd stop short of saying they've 'bet the company' on this acquisition, but it's not far off it. I would've offered you very long odds on Friday if you'd asked me the question: "how likely do you think it is REH will, in the next 6 months, lever up to 3x EBITDA through making a $1.9bn offshore acquisition at 15x trailing EBITDA?".
I'd be very curious to know what Advent paid for Morsco in 2011 (i couldn't find it). If i were forced to guess, i'd say 'a lot less than 15x'.
Ann: Acquisition of Morsco and Capital Raising Presentation, page-11
-
- There are more pages in this discussion • 69 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add REH (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$24.38 |
Change
0.660(2.78%) |
Mkt cap ! $18.39B | |||
| Open | High | Low | Value | Volume |
| $24.09 | $24.38 | $23.83 | $11.28M | 464.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 11498 | $24.37 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $24.43 | 1975 | 3 |
View Market Depth
| Last trade - 16.10pm 22/11/2024 (20 minute delay) ? |
| REH (ASX) Chart |
