comrades, when abc announced this deal, they were criticised for giving up their major growth business.
and now people are saying if the deal doesn't go ahead, then it's all over.
seems like there's nothing you can do to please the market - it will always find an excuse to sell you down.
the fact is ABC have stated they will still be able to meet their covenants even if the deal doesn't go through.
i think the 60% sale will go through.
the convertible notes i'm not so sure about.
they expected the sp to rebound on news of the deal, so they could issue the convertibles with a face value of about $5. there is no way they can do that with an sp of $1.5.
i sincerly hope abc doesn't heavily dilute shareholders by issuing convertibles with a face value below $4. if they are not cash strapped, i see no reason for them to do this. if they do however go ahead an issue them at these prices, it means they have been lying to the market all along.
ABS
a.b.c. learning centres limited
