Tony Rice has broken the golden rule of corporate governance. There is an old adge that sums it up rather neatly: Don't p*ss in your own swimming pool.
An adage that has served me well, I might add. Re. Eastcheap dollymopp, it's from Sharpe's Challenge - the one with Salman Rushdi's ex-wife in.
Lose the indefinite article in my previous post. It should have said: Nobody cares what you think because you're nobody. Yeah, I like that better. Why do you think Rice bought those shares? Because they were cheap? Think again.
I hope Toonman is right but from a macro perspective, I'd rather be sitting on a servicable debt and a prime asset in China than be debt-free with a chunk of fiat currency. Hyper-inflation is a real possibility. Also, the last time these had money to spend they wasted it on a share buyback that had zero effect. I think this latest disposal diminishes CWC as a takeover target. Tony Rice is pimping a British institution like it's some Eastcheap dollymopp.
The market doesn't like it and I don't blame it - selling a majority stake in a company in one of the wealthiest regions of an economic superpower. This'll never see 50p let alone the other fanciful targets. Management are clueless - god help us when they go on an acquisition spree in central America.
" in the glorious situation that they said yes take the whole lot then of course the outstanding loan of $1.558 billion would have to be deducted from the proceeds"
Are you on medication?
I can see the wisdom of selling the Monaco and Islands division but Macau? Increased revenue, gross margin and EBITDA in the six months to September. It's like Liverpool selling Suarez. And I have to wonder about concentrating on the the so-called Pan-American region - currently this means Panama and the Caribbean. I hope they have other markets in mind.