I think Duet pays 25% wagn+122.5m for dbp +multinet as the 42.5m is the net cash after debt repayment of $80m.
I thought this was very low at first and wasn't a good sign but doing the math the only way I could make the formula work was to either set the price of DBP and multinet so low that it didn't make sense or to increase the value of WAGN significantly from my initial valuation.
Looking at the most recent DUET presentation, they mention an initial 26% tariff increase and then CPI + 3% for two years.
I think this makes the value of WAGN much higher as most of this should flow through to EBITDA as mentioned by Blues
If this is the case then I think it looks good for us, so keeping my fingers crossed at the moment.
Disc beppa holder
PIH Price at posting:
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