@dreamingpanda go to hibiscus website & read about their presentation on the acquisition..they have stated they will not go on loan nor private placement as they have sustainable cash & also other monetary instrument that can be utilise..simply said they will not begging investor to pump them money nor they will beg bank for loan
Oil super high.... Hibiscus is flying... When people say sell at 0.40 it went up... When people say sell at 0.50 it went up... When people say sell at 0.60 it went up... When people say sell at 0.70 it went up...
Profit from this deal will start effective from 1st Jan 2021 although the deal estimated to be closed on end 2021. The profit will then be used to part fund the deal. This is what we called accrued economic benefit.
The interest to be paid to repsol about less than rm20m if close on time on end 21. However, the profit gain on 2021 from repso assets on 2021 will be more than 300m after tax but without include non cash depletiation.
Estimated EBITA / year can be rm500m++ if oil price maintain usd60+. However, the asset depreciation will be high as the right of key asset is on 2027 and 2032.
Base on the disclosed q1 results, these repsol asset net profit is about rm50m+. Oil price sold not disclosed but I think it shall be almost same as hibuscuss at around usd60.
The PP done ald raise about rm200m and cause the unit share increase from 1500m to 1900m. 200m from this pp + estimated 300m from repsol asset on 2021 + internal generated fund + Bank borrowin/ 1 more pp tranch ald sufficient to close this deal.
Jasonn Profit from this deal will start effective from 1st Jan 2021 although the deal estimated to be closed on end 2021. The profit will then be used to part fund the deal. This is what we called accrued economic benefit.
Wow..... didn't know about this. Was expecting the profits from Repsol to start accruing after full payment is made. Where can we view these info ? If correct, this Repsol deal is just too good to be true.
So let's assume they raise 1 more tranche with size same as previous pp, the total shares be diluted about 53% from 1500m+ unit shares to 2300m unit shares. However, the net profit from this deal will be100%.
My asummption may be wrong but all these info can be found from the announcement report from hibuscuss if you read carefully. My hibiscus share is about 10%of my stock portfolio, I increase to 25% yesterday and think its enough for my risk mgmt and will keep for long term ias long as oil price remain > usd 55.
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Posted by wallstreetrookie > 2021-06-08 18:21 | Report Abuse
Sold immediately when I saw pang72's comment