SW1 0.00% 1.0¢ swift networks group limited

Good to see the Medical media deal done. This isn't a...

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  1. 613 Posts.
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    Good to see the Medical media deal done. 

    This isn't a dilution.
    1. They are paying only $4.5m initially for a $25m business (the rest comes with performance hurdles).
    2. Cost savings of $3m per year in MM and Swift. That's pretty significant!!
    3. Provides an advertising vehicle for the existing Swift 75k screens (the main reason they did the deal).
    4. Medical Media have looked at Swift and have agreed to a 20% premium re-pricing. That doesn't tell me dilution. 
    5. From original announcement - highly accretive. This suggests will add to Swifts, earnings per share not dilute. 

    Don't think you will see anywhere near 18c.
 
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