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Cesna,
Ok, I get the point now. Yes, it would appear so. Shetty's pledged shares technically are not an issue, in case of margin calls he would lose big time personally but the company itself should be fine. It would actually de-leverage balance sheet. As long as books are not cooked (and there is no reason to assume that they are) and the company is running at a profit (and according to last trading update it is) we are good. FIN was never under any scrutiny, no suspicions, nothing. Next solid trading update is just a matter of time IMO, we had a great first 9 months (EBITDA 183m) and this almost certainly continued in the last 3 months of the 2019 (coronavirus and cyber attack happened after Xmas so no impact on YE2019 results), BayanPay's confirmed expansion in Saudi, Travelex back and running too. Unfortunately we've been caught in the middle of the perfect storm and are constantly getting hit by NMC ricochets atm! It won't last forever though. So yes, a bit of clarity re shareholding + trading update and we are good. Drop well overdone, market overreaction (as usual). It has to re-rate big time at some point.
KOH
KOH,
For anyone to draw their own conclusion if they are worried about related party transactions and off balance sheet financing. See the disclosures that have been made ie transparent and looks like a proper job on the face of it. Appears to me that disclosures have been made on the issue of related party transactions and likely ifrs impact. Its clearly complex due to the number of acquisitions and the legacy owner managers continuing interests. So just the outstanding share ownership issue and a good trading update and its all good?
Longish
Thanks, but what are you trying to say?
KOH
Related Party Transactions
Note 25, page 238 of the IPO doc has disclosures on related party transactions for the years to 2018
Accounting Policies
IFRS16 (ie relating to leases) only required for the reporting period beginning 1 Jan 2019. However, in the IPO doc, page 185 they say...
'During 2018, the Group has performed an impact assessment of IFRS 16. It is currently estimated that adoption of IFRS 16 would increase lease liabilities and right of use assets (net of prepayments) as of 31 December 2018 by approximately USD 542,380 thousand. Due to the adoption of IFRS 16, the Group’s EBITDA will improve, while its interest and depreciation expenses will increase. The net impact on profit and loss is expected to be immaterial'.
https://investors.finablr.com/media/1094/nevis_final-prospectus_with-edisclaimer.pdf