Post by
MyHoneyPot on Mar 06, 2022 9:37pm
NVA Shares - 430 million dollars of value to POU
POU own 450 million dollars worth of NVA now, and if you look at their latest presentation they expect to reach their net debt target of 300 million by Q3, of 2022.
The net debt target does not include the tons of investments that they have in NVA shares etc, which currently is worth about 550 million dollars. They used 7 dollars for NVA share value in the presentaion, NVA is currently trading for $10.70.
There is no way that NVA wants to buy the shares back from POU, or that POU would accomondate them with prolonged sale process. You are talking 40 million shares, or 20% of the company. To many shares and they are not in the business to finance NVA.
Plus at 10.70 those share are worth almost 430 million dollars, NVA would not want to pay that out of their FCF, it is simply to much money for a share buyback for NVA. They just excaped a near death experince of going broke and they have bonds they want to get rid of that carry a very high interest rate.
I think NVA is a great company and those NVA share will go to 12 dollars and if POU pays off it debt, which it very well could they could be a 30% NVA share divvy for pou shareholders, worth about $3.60 a share.
Don't expect NVA to buy them back i don't think they really want to and their share float is reasonable.
IMHO
Comment by
Konaboy on Mar 07, 2022 8:12am
I think it's an interesting play, two companies for one, so I don't have any additional NVA shares. Question is, what is the medium/long term play? My sense is that POU is not being recognized for this asset, altho I have not looked that hard at the numbers.