GREY:EORBF - Post by User
Comment by
Protonman-on Jul 31, 2012 10:07pm
211 Views
Post# 20171593
my take on a takeover
my take on a takeover A takeover is not very likely when Orbite has all the cards and knows how to play them. Now if we were talking about a single $5 billion capex [equivalent to a maximum 10 SGA plants x 500M] and IRR greater than 7 years, then that would be a different game of cards since capital is a lot harder to source at this time.
Orbite's growth strategy is brilliant, in that it will use revenue from the HPA to kick start the initial SGA plant. The total capex is therefore divided into multiple, incremental self-sufficient, self-funded SGA plants, which serve to de-risk the entire operation.