$365m enterprise value verse $55m npat

Vote tomorrow by shareholders to approve $900m sale of half of this 100 year old companies business.....(interesting to see if they halt trading prior to the meeting.)

Currently capped at $500m ....but $900m sale proceeds, would see some $135m cash surplus to all current gearing....thus EV $365M (Actual payment is scheduled for end of Jan)

....as discussed, company has suggested payment of an undisclosed fully franked special dividend, sometime after end of Jan. However that subject header (pre the dividend) just highlights the significant undervaluation of the company....and for simple discussion purposes only - they will pay a heft dividend.

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With regard to my suggested NPAT $55m....company had previously guided $150m EBIT....excludes one off charges, for the 12 month period end 31 Jan.

The part of the business to be sold for $900m...was sold on the basis of multipe of 12 (or $75m EBIT - half of the profit share of the whole company).....interest earnings.. circ $8m PA on that surplus cash $135m, more than makes up for the loss of Pfizer business......ie $55m NPAT pre the dividend of course and for