05-21-2021, 07:47 AM
(05-21-2021, 06:00 AM)Binary Wrote:(05-21-2021, 01:09 AM)crimsonghost747 Wrote: I did mathematics.
These are the expected numbers after T does the spin-off thingy. (estimated mid-2022.
T's dividend will get a amazing looking -44% reduction, which would put it at $0.29 per Q. This is calculated with THEIR OWN guesstimate of free cash flow after the merger... and just to be clear they are expecting $7.5b of FCF to part into the new company and $20b to remain with T.
The new entity will not pay a dividend.
So long story short: $0.52 to ~ $0.29
Got similar numbers after doing the math. But! "The new entity will not pay a dividend." - I might have missed that at a certain point reading through corporate communications, but how do you know?
Have a look here:
https://seekingalpha.com/article/4430323...transcript
"Regarding financial policies and capital allocation, the playbook will be straightforward. Based on our conversations with rating agencies, I am very confident this combined company will be rated investment grade, and we intend to rapidly reduce leverage through strict allocation of free cash flow to debt pay down. Our long term gross leverage profile will be 2.5x to 3x, and we expect to be around 3x, 24 months post close. At that time, we expect to be in a very strong position of financial flexibility, generating significant free cash flow to reinvest in dynamic growth and world-class content and to create attractive shareholder returns."