takeover value, page-5

"imagine if someone wanted to buy the coal terminal they have in QLD, it would go for 15x EBIT and at the moment the market is valuing it at virtially nothing."

If they sold Dalrymple Bay Coal Terminal, you will see an enormous re-rating as total corporate debt would be cleared. Zero, finito! Debt free at the corporate level.
QIC (where the BBI Chairman has very strong connections from his days as a Qld minister) or someone else could pay 10X EBITDA for that asset and they would be getting it cheap. Everyone's a winner if DBCT can be sold.

Just remember what the Chairman said at the AGM. Negotiations are at an advanced stage on at least two asset sales. I fully expect BBI to be free of corporate debt by the end of the first quarter in 2009. Hamill becoming Chairman of BBI was the best decision the company made. He has the connections who understand infrastructure. He proved that by selling 50% of Powerco relatively quickly in this environment. I trust he'll achieve a similar outcome with another asset by calendar year's end.
Hang in folks. We have ourselves an absolute bargain.