The Amazing Ronrico Posted March 9, 2020 Share Posted March 9, 2020 (edited) 6 minutes ago, b4mbi said: For a private company, the market cap = market value, so what a buyer is willing to pay and seller willing to accept, so £124m! A consideration when arriving at market value is the company's net assets , but also the expected net present value of the future cashflows, which when the owner can control these.... I don't need a lesson and I specifically said as a public company immediately before the transaction took place. Even at a private valuation of £124 mil, the debt position will very shortly be in excess of the purchase value of the company. But you say they’re not loading it with debt? That’s like buying a house for cash and immediately getting a 110% mortgage on it. Edited March 9, 2020 by The Amazing Ronrico Spelling Quote Link to comment Share on other sites More sharing options...
b4mbi Posted March 9, 2020 Share Posted March 9, 2020 3 minutes ago, The Amazing Ronrico said: It looks to me that it’s about hiding taxpayer costs as otherwise why would they repay the £78 million with new external debt so soon? Probably so they can go back to the taxpayer By election time and say ‘this is now costing us nothing the taxpayer got it’s money back in 18 months’ while they’re stacking future debt inside the business instead. As I said above I’d like to know how many shares were in circulation before the sale to work out the likely market cap of the company relative to the £150M debt it’s now taking on. My post you quoted from answered that, because overall government finances will be better off by £2.3m (in my example) by doing it like this. How else do you pay for a new ferry, which I think everyone can agree is needed? Government quite rightly don't want to put an additional £74m into IOMSPC to purchase the new ferry outright in cash up front when the company itself can finance the purchase over a longer term by having access to cheap finance via a private placement. Seriously, stick to hypnotism. 2 Quote Link to comment Share on other sites More sharing options...
The Amazing Ronrico Posted March 9, 2020 Share Posted March 9, 2020 Just now, b4mbi said: Seriously, stick to hypnotism. You really seem to be getting quite irrationally angry about all this. Why don’t you like people expressing their views on the debt position? 2 Quote Link to comment Share on other sites More sharing options...
WTF Posted March 9, 2020 Share Posted March 9, 2020 59 minutes ago, woolley said: Do you have any evidence of this to link? no. Quote Link to comment Share on other sites More sharing options...
sir nige Posted March 9, 2020 Share Posted March 9, 2020 1 hour ago, b4mbi said: Yes, of course the users of the service will pay. That's how business works. The new debt will not be unsustainable, if you'd bothered following and understanding my previous post, which links to the audited accounts and reading for yourself the publicly available report on future financing options for IOMSPC. Having a brand new vessel and control of the company is not "zero reason" Your trolling is a bit tiresome tbh. its loading debt on to users........just another reason to delay dealing with iomg pension fiasco....... £400-£500m of debt passed onto island residents in the next few years.......no different to the trams, trainsand buses are run..... 1 Quote Link to comment Share on other sites More sharing options...
thesultanofsheight Posted March 9, 2020 Share Posted March 9, 2020 7 hours ago, woolley said: But it's a profitable company and always will be. A real asset. ETA: I appreciate that if anyone can turn it into a loss making venture then our government would be the go to experts, but even for them it's highly improbable with a monopoly business that they control access to. I only put that up for comparison purposes with Aurigny and I said in a later post that I supported us buying the SPC and I still do. But you have to admit whether it’s a cash cow or not a huge amount has been spent already. Upto £40M on a new terminal at Liverpool that can’t even handle freight and now the proposed borrowing of up to £150M on commercial terms for new ships (which is more than we actually paid to buy the business). If the TT is cancelled it’s going to leave a very big hole in this years bookings. No different to a lot of other leisure groups and companies in the holiday sector who are going to take a real hit over the next few months. 2 Quote Link to comment Share on other sites More sharing options...
Derek Flint Posted March 9, 2020 Share Posted March 9, 2020 In other news. £2-3m to set up a 3 aircraft, govt owned airline. Locally based, 3x leased Q400, crews, maintenance and ticketing system. Flying to Liverpool, Manchester and Birmingham to start with. From a very credible source. 4 Quote Link to comment Share on other sites More sharing options...
sir nige Posted March 9, 2020 Share Posted March 9, 2020 1 hour ago, The Amazing Ronrico said: You really seem to be getting quite irrationally angry about all this. Why don’t you like people expressing their views on the debt position? +1 1 Quote Link to comment Share on other sites More sharing options...
snowman Posted March 9, 2020 Share Posted March 9, 2020 35 minutes ago, Derek Flint said: In other news. £2-3m to set up a 3 aircraft, govt owned airline. Locally based, 3x leased Q400, crews, maintenance and ticketing system. Flying to Liverpool, Manchester and Birmingham to start with. From a very credible source. Oh Jesus The most expensive electricity The most expensive ferry crossings The most expensive airline 1 Quote Link to comment Share on other sites More sharing options...
The Duck of Atholl Posted March 9, 2020 Share Posted March 9, 2020 49 minutes ago, Derek Flint said: In other news. £2-3m to set up a 3 aircraft, govt owned airline. Locally based, 3x leased Q400, crews, maintenance and ticketing system. Flying to Liverpool, Manchester and Birmingham to start with. From a very credible source. This. Quote Link to comment Share on other sites More sharing options...
dilligaf Posted March 9, 2020 Share Posted March 9, 2020 37 minutes ago, Derek Flint said: In other news. £2-3m to set up a 3 aircraft, govt owned airline. Locally based, 3x leased Q400, crews, maintenance and ticketing system. Flying to Liverpool, Manchester and Birmingham to start with. From a very credible source. Not in a million years. Sorry Derek. Do you think if was that easy, there would not be hundreds of small airlines fighting for the work ? Quote Link to comment Share on other sites More sharing options...
Lxxx Posted March 9, 2020 Share Posted March 9, 2020 44 minutes ago, Derek Flint said: In other news. £2-3m to set up a 3 aircraft, govt owned airline. Locally based, 3x leased Q400, crews, maintenance and ticketing system. Flying to Liverpool, Manchester and Birmingham to start with. From a very credible source. Can you iiiimagine the new government department they'd need to set up to administrate that size of operation! Quote Link to comment Share on other sites More sharing options...
Utah 01 Posted March 9, 2020 Share Posted March 9, 2020 40 minutes ago, Derek Flint said: In other news. £2-3m to set up a 3 aircraft, govt owned airline. Locally based, 3x leased Q400, crews, maintenance and ticketing system. Flying to Liverpool, Manchester and Birmingham to start with. From a very credible source. Excellent attempt to get the thread back on topic - I'm sure there's one about the IOMSP elsewhere. The Island could have it's own airline for relative peanuts compared to the disgusting waste of money this parish council has wasted - on the airport alone! We have a radar that doesn't work; a runway extension (£40M plus) that wasn't needed and actually reduced the margins for making a successful approach, a control tower that 'controls' a dozen flights a day that would have graced an international airport and instead had become a blot on the landscape blot - the list of governmental waste is endless with no culpability. Your idea of cross-subsidy with the ferry services merits consideration. But OMG! We might be talking about a transport strategy, an alien and unintelligible concept in Tynpotwald. 2 Quote Link to comment Share on other sites More sharing options...
snowman Posted March 9, 2020 Share Posted March 9, 2020 I've been told announcement Thursday Quote Link to comment Share on other sites More sharing options...
madmanxpilot Posted March 9, 2020 Share Posted March 9, 2020 11 minutes ago, dilligaf said: Not in a million years. Sorry Derek. Do you think if was that easy, there would not be hundreds of small airlines fighting for the work ? To set up, not to run. Quote Link to comment Share on other sites More sharing options...
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