Quote:
Originally Posted by Naijadr
Anyone that has inside info on Orient will tell u to stay clear...I would
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Just finished a preliminary scan of the PP memorandum (cost me quite some sleep
) and really it's not looking that bad.
They seem to have lofty plans and have done their homework and received the necessary approvals. They've even obtained a loan (85% of the needed N65billion) from China EximBank with UBA serving as the repayment guarantor. The remaining 15% (N12.75billion) is what is being sourced locally as part of the agreement. This looks quite healthy to me.
There arent any concrete plans to come to the market soon so liquidity might be a problem. But considering the PE ratio of 2.2 and dividend payout of about 55% of earnings (2009) to 81% (2011), I dont think it's such a bad idea. And of course, they might change their minds tomorrow.
The only question then seems to be whether they can actualize the plan. If they can, then its not an offer to miss so i guess that's what we should be discussing.
So please, Naijadr, if there's something you know about them which isn't public, do be kind enough to share it with us.