Hbunton, The way I looked at it was that if the CBA where willing to work with CCU on a debt restructure then in the context of the current PM market they're clearly bullish on the company. At present financiers are more prepared than ever to simply close out and write down, if they were anything other than confident they would have padlocked the gate, gone straight to Magna and said "its for sale lets get someone to walk you through the FIRB" Magna have expressed massive confidence through their actions and willingness to capitalise. The 13c is not a representation of CCU cap value, it's a figure that Magna accountants would have needed to average down to show value on a discount cash method of valuation that reflects total investment Vs % of predicted market cap. ( for lack of a better explanation )
The main players made the decision for me via their actions. Single asset companies will always carry plenty of risk, I guess I'm thinking that ths is a measured risk that I'm prepared to take and look to big up side
CCU Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
