Most of the acquisition is funded by the equity raising and furthermore post acquisition net debt / EBITDA of <1.0x, below IOOF’s targetleverage ratio range . IOOF currently looks like its priced as if MLC does not belong to them. MLC 2019 profit after tax was approximately 165 million ( the last profit that was pre covid) so imagine once that has been successfully incorporated into IOOF and add the synergies of the transaction in a post covid world , this company will look more like a 8-10 dollar stock just based on the divis they will be paying out. Also if you look at the chart when the current CEO took over back in August 2019 , shares went from 4.50 to 7.50 within 6 months so that shows his capabilities , unfortunately covid hit right around then but soon as we get past it and now with the scale that we have , the potential looks pretty amazing , IMHO
IFL Price at posting:
$3.43 Sentiment: Buy Disclosure: Held
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