Looking in more detail at the NZ sale, in theory the sale should change the Enterprise Value of a company, it does effect long term earnings, and reduce risk, so in practice it does, but just considering the theory.
If we get $500m for NZ, and that amount stays within the company, reducing debt and paying for ASC, in theory it should give the SP a one off boost, separate to any cost/benefit of reduced earnings and risk.
Column 1
Column 2
Column 3
1
Before
After
2
SP
3.00
3.80
3
Shares
622
622
4
Market Cap
1866
2366
5
Debt
1045
545
6
EV
2911
2911
In practice there is probably an expectation of that increase partly built-in to the current share price already, so lets imagine there is $300m expectation already built-in to the current share price, and $200m not builtin yet, that still gives a potential 10% share price boost (in theory)
