if $550m is what they paid, then selling them for $775m equivalent in this market is an excellent outcome. not sure why then ABN valued them at $1.5bn.
put it another way.
the deal was based on an EBITDA multiple of 14.1x
ABC's EBITDA for FY07 was $314.5m
using this multiple for the entire company gives an enterprise value of $4.434bn at 14.1x
now ABC's debt is about $1.8bn
which values the equity at $2.6bn
ABC has 470m shares on issue - which equates to a share price of $5.53 using this transaction multiple.
and given the australian assets are of better quality than the US ones, they may even fetch a higher multiple than 14.1x
in light of this, my view on ABC is very positive. sp should rally hard tomorrow, back to $4
ABS
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