15-05-2013, 01:15 PM
(15-05-2013, 12:03 PM)structuredfinancier Wrote: However, practically, KGT is debt-free. With strong parentage of Keppel Corp, doesn't this mean KGT is capable of raising debt to make future acquisitions and in turn boost NAV? Also, shouldn't there be some value in KGT potentially extending or renewing the concessions?
Sincerely appreciate fellow forumers' feedback and guidance.
Thanks,
young investor
Raising debt will not boost NAV. You can only boost equity by raising new equity (rights issue or placement) or by retaining profits. Actually, raising debt will complicate the issue since bankers need to be repaid so a portion of the cash-flow must be channeled back towards amortizing the debt before the asset lifespan matures.
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