At first look, I believed this acquisition made a lot sense — SATS/WFS deal would push the mixed corporations to turn out to be a worldwide cargo dealing with participant.
In reality, SATS would finally diversify revenues throughout Asia, Europe, the Center East and Africa, and North America.
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Supply: SATS/WFS Prospectus 3 Jan 2023
But SATS shares have fallen greater than 30%.
And even after the deal was accepted final week, shares have been nonetheless caught within the discount bin.
If the SATS/WFS deal had a lot progress potential, why is the market nonetheless undervaluing its SATS shares?
And extra importantly, will SATS nonetheless pay a dividend ever once more?
WFS — struggling earnings?
I went deeper into the SATS/WFS prospectus…
WFS earnings soared over the past two years. However that’s not what stunned me….