But the result of the right issue still unknown. Closing date for payment was 31 August. Why take so long to allocate the issue? Maybe SS deciding whether to allocate more to themselves?
1. Nordic Group has launched takeover offer of Starburst.
2. Nordic is trading at about 10X PE 2021, while Starburst, 4xPE 2021. (based on annualised profits).
3. Nordic (36.5 cents) has similar half year earnings as Starburst: circa $7-8 million.
4. Assuming Nordics is able to delist Starburst, Nordics' earnings will double w/o further issuance of shares.
5. At this time, Nordic has acquired 70% of Starburst. This is significant enough.
6. Nordic, in simple terms, has bought substantial earnings at a cheap price, and its stock should trade closer to 50 cents, imo.
