takeover target price 75cents

Institutions still own about 25-40% of the stock, many are just below the disclosure limit of 5% such as UBS, other current substantial holders are IOOF Holdings 11.7%, Renaissance Smaller companies 9.7%

A CDR shareprice if a takeover at a cheap 6 times fy08 estimated ebitda of 70m would be 75cents.


EBITDA Guidance FY08
As part of the renegotiation with the financiers an independent review has been performed to
determine a “bankable” EBITDA which is in the range of $67m to $75m. No restructuring or
integration expenses are anticipated which indicates a greater correlation between EBITDA
less interest and operating cashflow.
Depreciation and amortisation is expected to be between $45m and $50m. Finance costs are
expected to be approximately $26m.
Revenues driving this result are expected to be between $1,100m and $1,200m.