the future is bright. the future is tz, page-4

Thanks for your thoughts Klaas. I think there will be some serious glee come the New Year. I still have no reason to alter my view that the sale of TFS enabled TZL to regain the Intevia license. As PE/AGT need/want Intevia and TZL need/want AGT and TZL need to bulk up prior to the NASDAQ listing then the win-win situation for all parties is obvious.

TZL will/must take a fixed stake in AGT for the benefit of all parties. They may well complete other deals as well but the PE deal is the obvious major play. To make it worthwhile and in order to reflect the underlying value of the Intevia license, given forward projections, an amount of order US$100 M may well be involved in this play. The intrinsic undervaluation of the stock at present, combined with an increase in size following a PE deal of this size would enable a listing to occur of the size you predict. The listing market size will not take place at less than US$300 M. Adding various factors such as underwriter margins, increased demand for stock in the new entity from players almost certainly prepared to take placements, the initial placement could be at the price you suggest. I have been valueing TZL at a minimum US$300M for existing stock prior to any additional M&A and PE deals so the ASX delist offer price should still come in around $2.20. I am of course still bullish enough to expect the return post listing to exceed that, hence my determination to retain 75% of stock in the new entity.

Regardless of the wish lists and the various scenarios presented, underlying valuation is a technique that has served me very well to date. We will not have much longer to see who is right.