Post by
lovehockey on Dec 10, 2024 3:39pm
Transaction cost of about $7 mln?
Did you guys see that?
Gear Est. YE 2024 Net Debt (Incl. Transaction Costs) $MM ($10)
So if the debt is $2 mln to $3 mln at the year end then transcation cost id about $7 mln to $8 mln. That is highway robbery. If they are willing to lose that money to a transaction alone - why not just borrow the money and do a buyback instead. They could buy back 16 million shares for that amount and continue paying divs, at the same rate that would have been a reduction of 6% in monthly dividends.
One need to be a financial masochist to vote yes to this. If Newco has a potential as they say it does then Gear has even more potential.
Comment by
freeparking on Dec 10, 2024 9:33pm
I had that same light bulb go on earlier today. The power point presentation was pitching all the positives of the new company and the retaining assets. Sooo, GXE doesn't have the same growth potentil with those assets?? Or does it not? If they want to sell an asset off as being "non-core" then sell it and reallocate those funds. Simpler but maybe its too much work for Management.