Valuation Analysis - NST and SAR Merger 22nd Oct 2020, page-145

When NST & SAR announced the merger their combined market cap was ~$16B. Today their combined market cap, as NST, is ~$12.5B. The shorters are putting their money on the table believing it has further to fall.

Many will soon be questioning if SAR SH's are better off. If history repeats we can expect the NST executives to gift themselves $M's in performance rights for their merger deal. For the last 2 years ~40% of NST SH's have voted against Beaments remuneration incentives. Surely he and others can't be entitled to such when they have captained the ship as it drops $Bs. Performance rights should be off the table unless they demonstrate significant growth exceeding market expectations.

If the present SP is a bargain NST directors should be buying up, and the company should be implementing a buy-back scheme. It is only a few weeks back where Beament went on the record saying NST was excellent value at $14.50. Actions speak louder than words.