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World Kinect Corp V.INT


Primary Symbol: WKC

World Kinect Corporation is a global energy management company. The Company is engaged in offering fulfillment and related services across the aviation, marine, and land-based transportation sectors. It also supplies natural gas and power in the United States and Europe along with a suite of other sustainability-related products and services. Its segments include Aviation, Land and Marine. Its Aviation segment provides aviation-related service offerings, which include fuel management, price risk management, ground handling, 24/7 global dispatch services, and trip planning services, including flight planning and scheduling, weather reports and overflight permits. Its Land segment offers fuel, lubricants, heating oil, and related products and services to commercial, industrial, residential and government customers, as well as retail petroleum operators. Its Marine segment markets fuel, lubricants, and related products and services to a base of marine customers.


NYSE:WKC - Post by User

Bullboard Posts
Comment by BumblebeeRRon Mar 08, 2012 5:13pm
536 Views
Post# 19646123

RE: Just thinking..

RE: Just thinking..

Hi Cartguy,

Just a note of clarification. INT is not going to be flush with cash (ior at least will have no more cash than they have today). I believe you and perhaps some others on this board are under the impression that the money raised in the PP is going to INT. However, I believe these funds will in fact be going to Ortsbo Inc, which at that point will be its own, separate entity. INT will have shares in Ortsbo, but the cash will go to Ortsbo itself, and not INT. Therefore, INT will not have access to this cash, as I understand it. I could be wrong here, but I don't think I am.  All this being said, INT would still have the ability to raise funds (and become flush with cash if they so desired) by selling some of their shares in Ortsbo.  But I doubt that will happen ... not when Ortsbo is being valued at only $210M US pre-financing. 

As for INT shares plummeting after the spin-off: there would be no fundamental reason for that. However, INT shares will lose close to 1/3 of their value the trading day after the last day to own INT to be eligible for the special dividend. Perhaps that is what people are referring to? This simply reflects the fundamental change in value between owning shares and getting the special dividend, and owning shares and not getting it. Any shareholders who do get the special dividend will still theoretically have the same value on the books; although their INT shares will drop, they will eventually get the Ortsbo shares and hence, their asset value is preserved when it comes to the bigger picture.

BUMBLEBEE

Bullboard Posts