The bottom line guys, in case some of you nervous punters didn't read the corporatefile.com.au interview with CEO Gary Cohen.
corporatefile.com.au
IBA’s acquisition of iSOFT was partly funded by Allco Equity Partners (AEP), which is now a 26.4 percent shareholder in IBA. Does AEP have any direct involvement in the management of the company? Also can you explain what the position is with the $39.7 million Convertible Note that they hold?
Executive Chairman & CEO Gary Cohen
AEP is a separately listed company to Allco Finance Group (AFG), which only holds less than 15 percent of the shares in AEP. AEP has a separate board and executive to that of AFG. AEP is cashed up ($140M). We are not aware that there is financial pressure on AEP as a result of what is happening at AFG.
AEP has two directors appointed to our board. They have no direct involvement in the management of IBA. The $39.7 million convertible loan is convertible to equity at the rate of 86 cents per IBA share. There are no special ratchet provisions depending on the share price. It is non interest bearing (unless we pay dividends), it is subordinated to ABN and is not repayable before October 2012. The only other arrangement we have with AEP is a short-term loan facility it has provided for $56 million which is also subordinated to the ABN debt.
IBA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
