Strategic Review released just before 9 am today.
Nice to see suX got the sale to CNG mostly correct. It was broadcast here at 5:16 am Tuesday, a polite 3 hrs 30 mins before PPX's release to the ASX and on Twitter at 6:03 am.
Timing is everything in this business.
Apologies to PaperlinX Canada as suX incorrectly thought it was all of North America, not just USA.
Interesting to note that the name Marchant appears nowhere on the ASX release, and Boon just once. Just goes to confirm that success has many fathers but failure is an orphan.
It also denies Marchant the timeworn departure line of "having delivered (whatever) it's time for me to step aside ...(usually to pursue other interests)"
PXUPA is sharply up 15% on high volume, in early trade. Must be something wrong here Harry as this is good news for hybrid holders.
Now that the USA operations are sold, this gives PaperlinX wriggle room to quietly drop Mike McConnell. QUIETLY, No!
Apologies to PaperlinX Canada as suX incorrectly thought it was all of North America, not just USA.
Interesting to note that the name Marchant appears nowhere on the ASX release, and Boon just once. Just goes to confirm that success has many fathers but failure is an orphan.
It also denies Marchant the timeworn departure line of "having delivered (whatever) it's time for me to step aside ...(usually to pursue other interests)"
PXUPA is sharply up 15% on high volume, in early trade. Must be something wrong here Harry as this is good news for hybrid holders.
Now that the USA operations are sold, this gives PaperlinX wriggle room to quietly drop Mike McConnell. QUIETLY, No!
Anyway ... it's been a busy time ... with more to follow.
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| Just a flesh wound. You should see the other guy ... |
Thoughts on the Strategic Review ,Sux?
ReplyDeleteSeemed like a total non-event in terms of the significance of any of the findings and judging by reaction of equity markets, which are more reliable than hybrid movements due to lack of liquidity in the latter, seems market participants agree.
Slight positive in that both asset sales done at better than NTA, given equity mkts currently not giving them the same credit, but the amounts raised are chicken-feed, when looking at funding something significant in terms of restructuring and payments to hybrid and or debt holders.
Am surprised that they haven't given thought to a more aggressive buy-back on hybrids. These things are such a drag on the equity price and at current mkt prices they could clear the whole thing at less than A$30mn.
Given how depressed the hybrids are, I think the best solution for both hybrid and equity holders is to offer hybrid holders a tender offer on the hybrids at discount to face (say A$40-50 per $100 FV) and then throw in some equity call options as well (strike at 8c per share), so (former) hybrid holders also benefit from any improvement in the head stock, to incentive them for loss of 40-50% of face value.
This would also make PPX a more attractive takeover target, give PXUPA essentially acting as a poison put.
Finally, as you've mentioned, Marchant and his mates need to be cleared out. Hope the rumours you are hearing are true. Guy is just not fit - PPX snr mgmt needs more outsiders and someone needs to take an axe to the cost-base to right-size the business for the clearly lower revenues going forward ....