This week I attended a presentation by the managers of GJT as part of a major recapitalisation of its balance sheet (both equity and debt). The market cap of GJT pre the announcement was $6m and post the issue of 102m shares at $1.50 each, the market cap will be $172m at the current price of $1.56.
It's recapitalisation 'Extreme Makeover' edition.
The raw numbers have me interested, and to keep things simple for this post I have compiled the table below simplistically comparing headline figures for GJT pro-forma (post recap) and the other pure-play Australian listed Japanese property player; AJA:
Please note this assumes the recapitalisation is successful.
There is lots of information missing such as the location and quality of properties, cash-flows, quality of management and so forth.
With a 15c DPU on offer for GJT shareholders, its not surprising to see the share price shoot up from 75c pre the announcement to $1.56. What's more, the DPU will likely be tax deferred for up to 5 years thanks to the combination of debt and depreciation.
More to follow.
Kristian
Disclosure: no position in GJT or AJA
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