Purchase price $68,000,000 if 100% loaned by Westpac at a business loan interest rate of~5% would be $3,400,000 interest per annum (I am no accountant but I believe this payment can contribute to franking credits?)
Exceeds earnings of $15,000,000 NZD or $14,280,000 AUD less interest $3,400,000 paid leaves increased earnings of 10,880,000 divided by the current number of shares 173,000,000 (rounded up) Is an additional 6.3cents (at company tax rate of %0.275 equals net profit of $0.046 per share or combined $0.421 ($0.375 + $0.046) per share or a franked amount of $0.60 per share. at the current price of $13.79 represents 4.4% gross return not allowing for my under/over allowances, any company organic growth in both companies and any possible further acquisitions!
I am sure there is probably errors in the above but IMHO still very much undervalued at under $20 per share
GLTAH DYOR
DDR Price at posting:
$13.76 Sentiment: Buy Disclosure: Held
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