Originally Posted by
B772
Looking at the VA Balance Sheet total current liabilities are about 50% greater than the total current assets. With net gearing in excess of 200% and zero % return on capital VA are well behind QF who enjoy net gearing of 87% and 13% return on capital. Net tangible asset backing per share for VA is nil. A black swan event could make VA vulnerable to collapse or take over by SQ.
Not even SQ wants to touch VA those days. They've been on record previously that they were not happy with their VA stake for some time after having to report VA's losses in the SIA group's own financial reports.
I would not be surprised if SQ are looking at selling out themselves. There's a better chance of outsiders such as DL, NH or TK taking a stake over the "so-called saviour" SQ, which are just as responsible as EY and HNA for VA's financial messes over the years.