ABS a.b.c. learning centres limited

abc close to deal on us assets, page-53

  1. 884 Posts.

    if $550m is what they paid, then selling them for $775m equivalent in this market is an excellent outcome. not sure why then ABN valued them at $1.5bn.

    put it another way.

    the deal was based on an EBITDA multiple of 14.1x

    ABC's EBITDA for FY07 was $314.5m

    using this multiple for the entire company gives an enterprise value of $4.434bn at 14.1x

    now ABC's debt is about $1.8bn

    which values the equity at $2.6bn

    ABC has 470m shares on issue - which equates to a share price of $5.53 using this transaction multiple.

    and given the australian assets are of better quality than the US ones, they may even fetch a higher multiple than 14.1x

    in light of this, my view on ABC is very positive. sp should rally hard tomorrow, back to $4
 
watchlist Created with Sketch. Add ABS (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.