This is the best post from yahoo i have read on the subject....worth reading........
Since everyone else seems to be analyzing the press releases I'll try.
TSAT A & B has a total of 67,745,790 share outstanding per the 11/98 Qtr report. Also, the B shares hold more voting rights than the A shares. This is important!
Now the deal:
1st Scenario
1) TSAT gets $35 Million in cash from GMH for Tempo.
2) TSAT gets $67.5 Million in cash or stock from GMH as part of DBS sale. (in addition to keeping a 37% stake in P*)
3) TSAT still owns 37% stake in what's left in P*. If all the cash part of deal ($1.32 Billion) is used to pay debt obligations it leaves $220 Million in GMH stock of which TSAT own 37%.
so:
1) 35M/67,745,790 = $0.52/share
2) 67.5M/67,745,790 = $1.00/share
3) 220M*37%/67,745,790 = $1.20/share
TSAT shares = $2.72/share
Note: TSATB shares closed friday at 2 11/16 = $2.69/share!!!
TSATB shares have more voting rights!!! Hmmmm!!!
2nd Scenario
1) TSAT gets $35 Million in cash from GMH for Tempo.
2) TSAT remaining value with P* is worth $67.5 Million. (all remaining cash and share of GMH were used to pay off debt, bondholders, etc. (this assuming bondholders accept the 0.67 on the dollar for their debt obligations)
so:
1) 35M/67,745,790 = $0.52/share
2) 67.5M/67,745,790 = $1.00/share
TSAT shares = $1.52/share
Anyway I look at it, TSAT is worth at least $1.52/share. I plan on keeping the 3,300 shares of TSATA I bought on friday @ 1 5/32 for the run to at least $1.52/share, maybe more if TSATB share stay high.
|
