Cap raising will only be done if the controlling interests can get enough cash together themselves to fully participate.
Given that financing was one of the hurdles to the recent Privatisation announcement it may not be on the cards.
VRL produces lots of free cashflow that will be used to pay down debt AND pay large dividends.
Dividends will continue to be paid (IMO) as the controlling shareholder has large debts (associated with obtaining their large VRL holding) themselves that they need to service.
It would be in the major shareholders best LT/ strategic interests to initiate a buy back programme if cashflow allows. Meaning, that when they eventually are in a position (funding wise) to take VRL private there are less shares that they need to acquire.
Cheers john
VRL Price at posting:
$1.27 Sentiment: Hold Disclosure: Held
