Interesting developments in the Australian drilling industry with Perenti in a merger/buyout with DDH1 yesterday. The agreed price is at 3.4 x EBITDA which is quite low. Multiples of 5x EBITDA would be considered the norm in a favourable industry backdrop (which we have). A similar multiple applied to MSV (without having seen the FY 2024 4th Qtr results) of say normalised EBITDA at $40million would put a price of $136million less a reduction for debt to say $120million. The CEO has said the business should be earning EBITDA $50million. Nathan Mitchell has publicly stated up to $60million in the current market conditions. Taking the lower number, by EOFY 2024 they are targeting a reduction to $15million in debt on the balance sheet. In that case MSV on the DDH agreed multiple would be worth around $170million....that's around 77c a share. There's a lot of potential value in the business if they get it running efficiently & as stated the multiple DDH will be transacted upon is quite low historically.
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Last
42.0¢ |
Change
0.020(5.00%) |
Mkt cap ! $89.70M |
Open | High | Low | Value | Volume |
41.0¢ | 42.0¢ | 41.0¢ | $73.93K | 178.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 64690 | 40.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
42.0¢ | 17019 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 64690 | 0.405 |
7 | 144893 | 0.400 |
5 | 44217 | 0.395 |
4 | 43500 | 0.390 |
3 | 56546 | 0.385 |
Price($) | Vol. | No. |
---|---|---|
0.420 | 17019 | 3 |
0.425 | 71782 | 2 |
0.430 | 136418 | 2 |
0.440 | 34625 | 1 |
0.450 | 25000 | 1 |
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