ASX.MNF – MyNetFone


Funny how 1 word can make all the difference.

MNF another mega PE darling of the small cap world has pulled off what appears to be a good deal acquiring the International Voice business of SparkNZ for a price of NZ$22M. Its $3.5M pre synergy EBITDA adds nearly 40% to the most recently reported $5.0M EBITDA line. Against its current market capitalisation of $250M a $22M price tag looks to be reasonably accretive.

Enough about value. The debt facility looks to us like a bridging facility put in place to cover the settlement, our bet is there is an equity raise due in the medium term.

We like this one. A raising of $20M on a company of $250M looks to be the right size for an SPP or placement.

Our view, either the market will re-rate this down or the PE arbitrage game will keep this stock in play for a while let.  Looks like a winner in our eyes. Possibly a raising in order with positive momentum in the stock.


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