@observatory, Litrak proposed to sell their Assets at say 7% WACC. Thats the value of the asset (based on the concession agmt). ALR buys and proposes (obviously with Litraks support) to waive Govt Subsidy (and no more toll hike) and in return gets tax waivers ect. We all know Govt saves abt 4B in waiver of Subsidy whilst forgoing Tax hence geting ALR to buy at 5B. If ALR sticked to the concession agmt terms and raise bonds at below 7% they make money (provided traffic forecast and actual is same). Since ALR has changed the terms of concession agmt, its deemed a new proposal and hence has diff factors to consider. Thats why MOW gave them up to 2040-2044 as buffer to ensure the fund raising is successful. This proposal is a BIG win for the GOM to avoid paying the subsidy. You may see all approvals has been obtained from GOM even before Litrak shareholders. Its not normally the case in other deals. Lets not worry too much and hope shareholders do not vote against the proposals.
cost of debt is for Litrak specifically and not for ALR. ALR is buying at WACC of 7.95%. (see page 58) so provided borrowing cost below 7.95% and no reduced traffic ARL will pay down the loans earlier.
Ya agreed any dividend paid will reduced final payout. But as shareholders if the deal is a done deal they rather payout extra cash now vs waiting to complete the sale. Litrak has excess cash vs loan repayment and other obligations, so should be able to payout now if they are confident the deal is a done deal, just logistics. if the normal 15 sen, business as usual until all is signed and sealed.
SM only enriches himself. its a fact and its all written in the wall ie relisting of malakof and even more interesting is he is taking mmc private cheaper than hiis injection and projected cashflows of ptp in 1999. shame to bursa.
MMC was a great play for all those who bought in last 3 to 4 years... sorry for the people who believed in SM and hoped he will deliver. when pnb can throw the towel on him it says alot... dont trust a crook.
12 Jan to 15 Mac is the 60 days. yes they can buy below or at offer price.. not above. its a SC rule not to buy above the GO price. its no more abt compensation but fine and or jail term to the offeror
a revision in offer can be made anytime before the 46th day. once offer is closed the offeror cant buy above the offer price dor 6 month. and normally no offerors will make another offer within 12 months... or they may have another game plan.
an offer can only be revised if its kept open on the 46th day. total period for a GO is 60 days max. first window 21 days followed by 14 14 days 11 days. the last 11 days is just accademic. 45th day revision to give time for IA to produce revised opinion within 7 days.
whether its a highway trust or just a simple fund raising via a new bond issue doesnt make any difference. highway trust helps the govt by aboloshing the toll compensation and extending the concession period. a new bod issue will b status quo...