AMA - Blackstone deal requires S/holder vote, page-5

The ingenious AMA directors are relying on a ‘transaction multiple’ value of some 10+ times EBITDA to value the continuing and proposed newly listed ACAD division of AMA.

We all know that rarely does a business trade for transaction multiples on the ASX in the ordinary course. At best it would be lucky to trade at 60% of that multiple unless the company can sell and spin a huge growth story.

That is, at 86 cash for panels, and probably closer to 20 cents for the continuing business, along with exit and liquidity risks for shares taken in the unlisted Blackstone entity for the panel business if shares mix rather than just cash taken, the ‘carve out’ offer from Blackstone and the Directors of AMA is a nothing flash compared to AMA’s existing share price of over $1 and its future in an ‘as is’ state.

Warning for the Directors of SFH in selling a carve out of brands tale to shareholders.