Gday Rocky1MTU bought clever on an EBITDA multiple at 2.2 times....

Gday Rocky1

MTU bought clever on an EBITDA multiple at 2.2 times. They funded it through the share placement at $1.80, effectively selling their shares at an EBITDA multiple north of 10 times. Thats going to boost EPS.

Ideally MTU would be funding their growth out of cash flows but the discrepancies in the EBITDA ratios probably justifies issuing shares and MTUs history of consolidating purchases adds comfort.

Benefiting through the industry consolidation that is going on is one thing but what I like about MTU is that management has a good eye for ensuring they only purchase businesses with a high return on operating capital and adds leverage to their size and distribution network. Its not just a case of purchasing to artificially stimulate EPS.

Dont know much about MAQ but I think both IIN and TLS have merit in different ways. MTU though is my favourite Telco Exposure and sub $1.40 I couldn't resist another bite.