An AFR-related publication today reported on MCW receiving a high-five from GSJBW for resisting the urge to pull the trigger on a dilutive equity raising and likewise resitisting the urge to sell assets well below book value.
However management has talked up the possibility of an equity raising associated with funding an acquisition and stated that any such transaction would need to be earnings per security neutral or positive.
Furthermore management has talked up the possibility of de-weighting its offshore exposure by acquiring Australian assets, most likely sub-regional shopping centres in the range of $50MN - $80MN) thus further diluting the offfshore investments over time.
Speculating on the internalisation of management, GSJBW estimates that 5.8x base management fees or about $51MN would be required to break free from MCQ.
MCW Price at posting:
64.0¢ Sentiment: Hold Disclosure: Held
