Started a new job this week, so haven't been following HC during the day. Thanks for everyone's posts as always.
Thought I would share this for piece of mind, but might be what everyone was thinking anyway (it certainly provided me a lot of comfort). I was a bit concerned at first when I read MA's Open Briefing last night and saw him mention the $123m of after-tax proceeds from the CCP sale, so I asked him how this reconciled with the $194m post-tax cash figure he mentioned to some of us previously.
Here is his response:
"The $220m figure is our cash balance immediately after deal completion.
After account is taken of all our currently known circumstances (the deal, our White Dam cashflows, our available tax losses and the timing of tax payments) our projections are that we will have a net cash position of $194m, before allowing for any distributions.
The $123m figure is only an indicative figure of what the result would be if the deal was taxed (in isolation) at 30%."
As I am a tax lawyer by trade, I wanted clarification of this because you don't usually talk in terms of tax on gross proceeds in isolation (and I was just concerned that they may have revised their estimates). I understand why MA is doing this in these circumstances though, as it is in EXS's interests to define "post-tax cash flows from the CCP sale" as low as possible so that IVA are arguing for as low a distribution as possible.
Thinking seriously about having another stab at more shares tomorrow if we stay at current levels. It is just too tempting.
EXS Price at posting:
61.0¢ Sentiment: Buy Disclosure: Held
