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Umeed
"In present situation, what intu need is, sell some assets and refinance their debt (or wait few years to get things sorted out), that is all."
1 As evidenced they have been trying to sell assets in a challenging with limited success The only way they can shift stock is with some heavy discounting
2 See above Refinancing is the problem with a reluctant lending market on retail assets
3 Waiting is not an option Expiries of loans are too darn close
H-hi ... Do not worry. Intu is not going to have rights issue. Actually, they could not do rights issue at price below 50 pence (as Intu paid up share value is 50 pence). Well, Intu can do rights issue, but for that they would need to reorganising and write off a huge chunk of share capital. Intu could have done rights issue when share price was much above 50 pence. So ... have a nice sleep and relax.
Regardless, 20 pence rights issue wont help them anyhow, as they would need to raise ~ £500 millon or more, to bring their debt level below 50 % and then they can pay dividend saving millions of pounds for shareholders.
In present situation, what intu need is, sell some assets and refinance their debt (or wait few years to get things sorted out), that is all.
If intu sells ~ 800 million pounds worth of assets, that would sort things too, as then, they would be in situation where they could even start paying dividend.
Most right issues collapse 50% before rallying strongly so if we get 20p R.I, don’t invest all your money at once.........save some for 10p. May not happen but it did with Glencore and few ones that were driven down because of huge debt and shrinking income.
I can see that happening, then it would settle around the 85
Or we might get share consolidation (5:1) first then massive rights issue at 100p. The only problem is that intu and the rest must be run like an ETF (expense ratio should be falling and not more than say 0.30% of assets). Only asset managers needed, dumb CEOs, dodgy chairman not needed in a business like this.