EAEN - Retelit SPA

[yadayada]

This is a telecom with 100m$ of cash and cash equivalents and apparantly a very valuable unmonetized asset in Italy. packer, any thoughts?

 

This lays it out well

https://drive.google.com/file/d/0B7jM43BtbfuKZWhwbzZJTVJLYWs/view

 

Looks to be a low risk special situation?

[Packer16]

It looks like there is only 32m Euro in cash and 70m in NOLs.  The company has 10m Euro in EBITDA.  At 5x EBITDA (Colt's multiple), you have 82m Euro in value plus 70m Euro in NOLs.  Not to far from the market cap of 98m Euro.

 

Packer

[yadayada]

what do you think of those claims that the business has assets that are supposedly very underutilized? Their core fibre network that apparantly can generate 100m + of cash a year? I think the thesis rests on that. It seems very questionable to me.

 

And there are also savings that could be made to current business. Apparantly the old CEO, or chairwoman or whatever she was, and BoD was corrupt, and are kicked out. According to the old VIC write up, savings could be around 10m a year.

 

Also apparantly according to the write up, there was a bid of 55m euro's for the tax assets? But can they be transferred to another company? I cannot find info about this anywhere.

[yadayada]

Looking at ZAYO group, they have 81k miles of fibre. Their EV is 8.8bn$ . Retelit have about 5k miles. So that would mean their fibre is worth 4-500m euro's? Also interesting to read Zayo's prospectus, as it provides more info on their business.