It's worth reflecting on what a suspect acquisition One Rail appears to be:
- Cost $1,500m (see working on linked post below)
- EBITDA contribution - $79m minus uplift in other bulk freight. This isn't broken out in the numbers.
- the best part of $74m in additional depreciation.
So we saddled the company with debt to buy an operation that makes virtually zero bottom line profit, valuing it at almost 20x EV/EBITDA. The best hope is that this multiple might compress to 15x next year and perhaps it contributes $30m NPAT - an implied P/E of 50x for this mediocre business!
The presentation mentions the word "synergy" once but isn't brave enough to put a figure on this.
I'd very much like to hear a stronger justification from AZJ management on how this deal is value-accretive to shareholders.
https://hotcopper.com.au/threads/ann-aurizon-announces-sale-agreement-for-east-coast-rail.7149465/page-7?post_id=65338147
Ann: Full year results presentation, page-12
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Last
$3.44 |
Change
-0.010(0.29%) |
Mkt cap ! $6.332B | |||
| Open | High | Low | Value | Volume |
| $3.46 | $3.47 | $3.42 | $15.78M | 4.589M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 66924 | $3.43 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.45 | 103495 | 6 |
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| Last trade - 16.10pm 17/09/2024 (20 minute delay) ? |
| AZJ (ASX) Chart |