The speculations has work well in our favour. I am hoping it will gain more momentum toward the official recap ann.
If alinta can manage to sell assets for 500 mils to 1 billion then we should be laughing. Our gearing and financial ground will go down to green and safe harbour as a result. A re-rating of the company will definite after the successfully completion of the recap. Then re entry into the SAP/Index. Result of that will see the stock price rise far beyond current level...lets said above 50c . a good real life example of is Pacific Energy Limited with two power stations in VIC/NSW with market cap of 26.19 mils which currently trading at 20c. Let's said after recap alinta has sold four power stations plus the alinta energy market in WA. We have only 8 power stations left.
Remember alinta biggest shareholder gpg has bought their ~20% stake at high 7c to 8c range. So to gain their support, i would estimate the cost will be more than 8c per share. Part of alinta's official Samuel report mentioned about high 8c to 10c per share in different windup cases.
my guess is the price will slowly rise up before the offical recap ann.
AEJ Price at posting:
6.4¢ Sentiment: None Disclosure: Held
