Photon Group returns to ASX – and could sell Naked
Naked Communications – the last big acquisition by Photon Group before it imploded – may be sold, the prospectus for Photon’s recapitalisation reveals. And Photon today returned to ASX listing – with its share price standing at 13c, compared to its $1.02 valuation before the company revealed its problems.
Referring to the “potential sale of Naked Communications”, the prospectus states:
“As part of the Deferred Consideration Restructure Agreement with Naked Communications Limited (“Naked”), Photon and Naked have agreed to use reasonable endeavours to agree to a new long-term incentive scheme within a specified time period. If agreement is not reached within this time, the Naked Deferred Consideration Beneficiaries may elect to either acquire the Naked group, or require Photon to initiate a competitive sale process for the Naked group.””\
If it goes this way, the Photon better hope for the Greater Fool to come along, they paid way to much for Naked.
11.5 times EBIT, wonder how the other companies in photon feel about that mutiple
Eleven and a half times earnings. Short of PT Barnum and a fool, no chance.
Depends if they had a bad financial year…
11.5 X EBIT !!!!!!!???????????!!!!!!!
$3M EBIT gets you $37M?
WHATEVER FOOL PAID THAT PLEASE CALL ME IMMEDIATELY – MY AGENCY IS FOR SALE ….. TO YOU!
They’re kidding right ?
The Business was run by idiots.