ABS a.b.c. learning centres limited

sale of 60 holding or 60 placement by abc us

  1. 404 Posts.
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    The presentation diagram is concistent with Meril Lynch making a payment to ABC US in return for shares and ABC US borrowing from a new banking syndicate in the US. The resulting "cash" back to ABC Australia is partialy debt funded by the now off balance sheet minority interest in ABC US.

    The diagram is consitent with ABC being diluted by a placement by the US firm that them repays part of its loan to ABC. It does not involve sale of any shares only dilution.

    If it is a proper sale the diagram should have ABC receieving cash from Meril Lynch not from ABC US. ABC Aus then transfers share in ABC US to Lynch.

    The "proceeds" are 60% of 750m not $750 for 60% as implied in the anouncements double speak.

    The subordinated notes remind me of the notes Alan Bond issued to Kerry Packer for the last 100m of the sale proceeds of the 9 netweork to Bond. In the end Packer wound up owning the network again.

    ABC may have dropped a bundle in the US and are so evasive that they can not come to say what the reulting capital loss or profit is is approximately.

    If it is a placement then there is no capital loss only an asset impairment adjustment at balance dates.

    Disaponting double speak.

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