RE:RE:RE:RE:Superior Sells Construction Product DivisionBeckysboss wrote:
Makes me wonder if they have a bigger plan in mind here. Canexus may want to sell assets to reduce their debt, perhaps the deal with CUS falling apart , the FTC intervention, limits on what they might retain from that deal, construction division puts a lot of money in SPB's pocket, maybe there is a sub plot we are missing. If not certainly the debt reduction is a positive. Can't believe that this CEO doesn't have a back up plan, seems too coincidental that the construction division closes a deal finally having been testing the market for years just when the CUS deal terminates. Hmmmmm.....
I suspect that the sale of the Construction Services has been in the works for a while and was part of “Plan A” to help pay for the Canexus acquisition.
That said any good Management team always has a “Plan B”.
Canexus seems to be attempting to put a positive spin on their future. If things are actually that good, why were they attempting to negotiate “financial assurances” from Superior to extend the outside date to allow Superior to contest the US FTC opposition in court….
It will be interesting to see how the $25m termination fee issue is resolved. It is much more important for Canexus than Superior…
Although in my opinion Superior would have been a better company if the Canexus acquisition was successful. Without it and substantially reduced debt they remain a very good mid-long-term investment.
As Always; Do Your Own Due Diligence; It’s Your Money !!