Sun May 11, 2014 2:55 pm
Roath_Magic_ wrote:Roath_Magic_ wrote:Ive answered that. You have appealed to my business brain so ive given you the answer.
I wouldnt EVER do debt to equity, and neither will he. Hw owns 90% of the club so tell me one reason why he will essentially buy the other 10% for £100m which of course values the business at £1 billion pro rata![]()
Its pure nonsense and the suggestion is ludicrous, he is playing you all for fools and you are lapping it up. If the club is worth £80m then the going rate for the final 10% is around £8m. Its like embarking on buying a house to make a profit and then buying a £80,000 house for £1 million.
Ridiculous.
He will buy the other 10% for around £8m - £10m and the club will still owe him close to £100m.
Bookmark it if you like.
Im castro btw
Castro wrote:This debt to equity scenario still makes absolutely no sense what so ever, and the more the debt rises - the less sense it makes.mFor what possible reason would he ever do it?
Partial debt to equity - sure. But coverting £100m into equity is like a money hungry penny pincher buying a big mac meal for £150 when he could just pay just £6.
His goal is to make money so why give it away?
Sun May 11, 2014 2:58 pm
Roath_Magic_ wrote:
I told you the float was ridiculous and I also told you debt to equity makes no sense. If he only needs to acquire 10% of the club then there is no way he will pay £80m for it, that values the company at £800m pro rata which is bonkers.
I assume there will be a partial debt to equity.
Everything loaned is covered as always.
Sun May 11, 2014 3:17 pm
Roath_Magic_ wrote:I dont understand what is confusing you.
He will never do full debt to equity because he will essentially be buying the remaining 10% stake for £150m.
I said he would do a partial debt to equity meaning the club will still be in debt to the tune of £100m
Here is another, enjoy....Roath_Magic_ wrote:
I told you the float was ridiculous and I also told you debt to equity makes no sense. If he only needs to acquire 10% of the club then there is no way he will pay £80m for it, that values the company at £800m pro rata which is bonkers.
I assume there will be a partial debt to equity.
Everything loaned is covered as always.
Sun May 11, 2014 3:21 pm