The major asset of Lion seems to be their 3/4 share of SBL. SBL's market cap is $36m at the moment, so Lion's share worth $25m.
According to Lion's 3rd Quarter Financial statement, Lion has only SGD12.9m of cash and is losing money. They have S6.1c per share net assets. Other than SBL shares and the little bit of cash, there's nothing else there.
CGT has 270m shares and Lion 730m or 2.7x as many.
And CGT directors are recommending a swap of 2 Lion shares for 9 CGT shares???!
That values Lion at 12x CGT !!!???
But Lion is just 3/4 SBL and a tiny amount of cash. There is nothing else, just jazzy marketing and a nice website.
So CGT directors are telling us that SBL is worth 16x CGT???! This is a good terms for merger???
It's going to be an egg on face AGM trying to defend this nonsense bid !!
At least CGT's recent performance has been strong and outlook is good. More the marvel the directors think the business is worth 1/16th of SBL. Reediculous ^ 1000
CGT Price at posting:
14.0¢ Sentiment: None Disclosure: Held
