I find the sell down unfathomable too, but still supremely comfortable in the long term. Not sure whether paying of Arviqa debt to unlock income is my preferred option, or not, after all the earnings are still there, accumulating. I think the Verne sell of is a good deal (particularly the earn out) - yes I think Verne will become a golden goose, but without the considerable long term funding was for DGI9, actually an albatross. That the sale now gives them options, is only a positive to me, in unlocking Arqvia, and a phoenix like rising for DGI9.
Initially I felt prioritising Arqiva to be the priority but writing this article brought me to the view to fully pay down the RCF is key. A new RCF can be arranged in time, and in 12 months I believe interest rates won't be as high as they stand today.
I find the sell down unfathomable too, but still supremely comfortable in the long term. Not sure whether paying of Arviqa debt to unlock income is my preferred option, or not, after all the earnings are still there, accumulating. I think the Verne sell of is a good deal (particularly the earn out) - yes I think Verne will become a golden goose, but without the considerable long term funding was for DGI9, actually an albatross. That the sale now gives them options, is only a positive to me, in unlocking Arqvia, and a phoenix like rising for DGI9.
Initially I felt prioritising Arqiva to be the priority but writing this article brought me to the view to fully pay down the RCF is key. A new RCF can be arranged in time, and in 12 months I believe interest rates won't be as high as they stand today.
What EV would you assign to 100% of Arqiva and how FCF generative is this company?How does this compare to similar companies in the industry?
It's a great question and one I plan to tackle in a future article.
Hello, does anyone have any updates thoughts on DGI9? I notice it has continued its fall this week. Unclear why