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I see AUD $527 Million on Sinochem's balance sheet, and they have not quite twice that much as debt already on their balance sheet.
So how are these guys going to pull off a $3B merger proposal?
Assume that Sinochem earns roughly AUD $150M per year (that was my rough calculation for 2008 based on the Renminbi denominated financials showing on Reuters). Assume that Nufarm can add in another $150M per year. Assume they finance the AUD $3B buyout as a 10 year loan at 9% interest. That means they have AUD $450M in interest payments each year, and they cannot afford to do this deal?
Guys, can we pool together on this and maybe someone else can show me the errors in the calculation? It doesn't look to me like Sinochem can afford to do this deal.
So how are these guys going to pull off a $3B merger proposal?
Assume that Sinochem earns roughly AUD $150M per year (that was my rough calculation for 2008 based on the Renminbi denominated financials showing on Reuters). Assume that Nufarm can add in another $150M per year. Assume they finance the AUD $3B buyout as a 10 year loan at 9% interest. That means they have AUD $450M in interest payments each year, and they cannot afford to do this deal?
Guys, can we pool together on this and maybe someone else can show me the errors in the calculation? It doesn't look to me like Sinochem can afford to do this deal.