How will the IPO go ahead/be successful if AEE is currently at MC $20+m?
I would expect the IPO to raise say $10m before costs; for ease of rounded numbers. If AEE gives up 20% ownership, then Vanadis has a $50m MC or $40m EV.
Why would anyone by 20% of a spin off for $10m, when they can buy 50% of AEE for the same money and get Tiris as a bonus? Obviously it would be near impossible to buy 50% of AEE without moving the SP to any great degree considering the T20 here. The point is, at current AEE MC, any IPO will be priced at a significant premium. And I cannot see a market willing to pay a huge premium to AEE.
I think management expected a far higher SP/MC when they first announced the Haggan spin-off.
You say the SP is capped. I agree to a certain extent. But in doing so, the IPO must be in doubt.
So why cap? To accumulate more? If so, then should we not expect a change in sub holder notice? Or is there a possibility the capper does not want AEE to spin off Haggan; particularly in light of the huge move in V price.
If you choose to respond; perhaps leave out emotive language such as troll/dishonest.
AEE Price at posting:
1.9¢ Sentiment: None Disclosure: Not Held
(20min delay)
