A lot has been written about PPT by both MM and the larger media in general; hence, we won’t regurgitate the full story again, but below are a couple of salient points relevant to the current play.
- Although the price/deal looks reasonable, shareholders still have many questions about how much of that price will be realized.
- Questions remain about how debt and tax will be dealt with. In a full liability situation, the deal could see $500m in tax owing.
- Our conclusion was easy: We see no reason to invest in PPT; it’s in our “too hard” basket.
MM is neutral toward PPT
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This morning, we updated our view on four of the ASX fund managers who remain on the ASX, perfectly illustrating that not all ships will float as one.
- Remember MM is bullish towards equities over the next 12-18 months, which should provide a tailwind for the sector.
