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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40.0¢ |
Change
0.015(3.90%) |
Mkt cap ! $85.51M |
Open | High | Low | Value | Volume |
39.0¢ | 40.0¢ | 38.5¢ | $106.3K | 269.9K |
Buyers (Bids)
No. | Vol. | Price($) |
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3 | 209042 | 38.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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40.0¢ | 50499 | 2 |
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No. | Vol. | Price($) |
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3 | 209042 | 0.385 |
4 | 56237 | 0.380 |
2 | 49666 | 0.375 |
7 | 99900 | 0.370 |
2 | 12735 | 0.365 |
Price($) | Vol. | No. |
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0.400 | 50499 | 2 |
0.410 | 28400 | 2 |
0.415 | 52304 | 2 |
0.420 | 26301 | 2 |
0.430 | 40000 | 2 |
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