RE:RE:Thoughts on recent eventsWhy do I think the next move is to sell Viking?
National Bank's list of publicly marketed asset packages included OBE's Viking in its most recent weekly report.
Spending choices are about picking between opportunities.
Buying back shares at current prices is an opportunity that is hard to beat.
Exchanging the buy back opportunity for the Woodcote purchase, suggests the latter is better than the former.
That said, I suspect the next step may be how to get both opportunites together - ie how to maintain their buy back.
My understanding is buying back shares requires at least $60 million space on thier credit line. I suspect if the intention was not to sell Viking, then the Woodcote purchase announcement would of been accompanied by an increased debt facility announcement.
If OBE increases its credit line, that may be a signal Viking isn't going to be sold.
I suspect the sale of Viking is a Want, not a Need.
If OBE gets a reasonable offer for Viking, then I expect it will be sold - otherwise not.
So putting that all together,
Viking on the For Sale List
Lack of additional Financing
Buy Back Opportunity
Makes me think Woodcot may be swapped for Viking if the price is right.