RE:RE:RE:RE:RE:RE:💰As per Spirit, valuation is now U$865M, from U$1,090M Trying to make sense of this. So originally,they were to get $500M + offload the related assets and liabilities which net had a deficit of ~$500M ($495M at June 30, $488M at Dec 31) for a total deal value of ~$1B (C$1.3B).
Now they get $275M + presumably offload ~$600M (previously ~$500M) of liabilities net of assets (based on the $875M EV in Spirit Aero's press release). This is therefore $125M less than previously. Bombardier will also get more favorable terms from Spirit belfast/morocco than they were getting previously from their captive Belfast/Morocco division, the value of which has not been quantified but again presumably, is worth $125M over however many years if Bombardier's press release is correct.
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Shamhorish wrote: and here the deceiving head line says
Globe says Spirit buys Bombardier unit for $275M (U.S.)
people read this, (most people only read head lines) they say ooohh, fire sale, sold for pennnies, bbd is this, bbd is that
but the body of the massage can not twist facts
. The total value of the deal remains the same as previously announced, but under amended terms Spirit will assume a greater portion of liabilities while paying less outright. Cash proceeds to Bombardier will be $275-million, down from initial consideration of $500-million. Spirit will assume liabilities, including government refundable advances and pension obligations worth $824-million, in addition to other unspecified adjustments in favour of Bombardier.
[url=https://www.stockwatch.com/News/Item?bid=Z-C:BBD-2979729&symbol=BBD®ion=C][/url]