Rights is­sue was huge suc­cess

Finweek English Edition - - MARKETPLACE SIMON SAYS -

The rights is­sue for Con­sol­i­dated In­fra­struc­ture was a huge suc­cess with ap­pli­ca­tions more than twice the num­ber of shares be­ing is­sued. I sug­gested share­hold­ers fol­low their rights and the de­mand tells us that at these lower price lev­els (the rights is­sue was priced at 1 930c), share­hold­ers are keen buy­ers. The share has lost about a third of its value over the last year and a sin­gle-digit price-to-earn­ings ra­tio (P/E) makes it very cheap. The new ac­qui­si­tion, to be funded by the cash raised from the rights is­sue, cou­pled with ex­ist­ing busi­nesses, makes for a com­pelling in­vest­ment at cur­rent lev­els.

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