eng v mnf v fre , page-10

Hi Cicatriss,

Seven paid $34million and wrote off $18million of that. That confirms what I mentioned before about Seven rushing in and overpaying on the ENG/Unwired investment.

Seven valued ENG/Unwired at $60million. Hence paid $34million for 58%. They have written off 50% ($18mill) of their investment in the first year. Hence a saleable value for Seven's investment of $16million. Today they are trading at $14million. So at the moment Seven are saying ENG are trading pretty much at fair value.

If Seven are valuing ENG at $16million, they are using our similar previous EV methods too imo. Hence another reason to run the ruler over MNF. Seven have probably given ENG a kick up the backside and told them to sort their structures out - which they are now focussing on.

But the previous still stands ie if ENG can reduce costs their EV goes up. At the moment MNF should be trading at an EV/Sales of approx 1.5-1.8 imo. FRE, well i just can't say but still over valued imo

Cheers,
the Sparkler