independent expert asl bdl merged value

Marger Scheme Booklet
BDO Kendalls Appendix valuation of the merged ASL BDL (appendix A1 14)

Value per Ausdrill share $2.97-$3.43
Value of 14.5 Brandrill shares $3.06-$4.00

By my own (rough) reckoning using the most recent financial statements and assuming a 30 percent decline in EBITDA in FY10 compared to FY09, EBIT, shareholder return the merged company is undervalued, well geared compared to its peers and currently trading at a 15% discount to merged NTA

Code Merged BDL ASL
Date 13/10/2009
Share price 1.86

All in '000
Total shares outstanding 207000
Cash 45000
Receivables 111000
Inventory 101000
Other current assets 3000
Current assets 260000
Total assets 737000
Intangible assets 3000
Payables 76000
Current liabilities 192000
Non-current liabilities 189000
Total liabilities 284000

Revenue 690000
EBITDA 97826
EBIT 53282
Earnings attributable to members 28500

Current ratio 1.35
Quick ratio 3.38
Debt/Asset ratio 0.39
Debt/Equity 0.63

Market capitalisation 385,020
Enterprise Value 513,020
Tangible enterprise Value 510,020

Enterprise multiple (EV/EBIT) 9.63
Enterprise multiple (EV/EBITDA) 5.24

PER 7.23
NTA per share 2.17
EPS 0.257
Price/NTA 0.856

So, thoughts on whether the merged company will hit $3 within 12 months?

Food for thought / comment, dyor