Ann: Acquires iQ3, page-81

I think the market sees the announcements and the headline of 100m ARR for what they are - meaningless. If you had 160m, would you spend it on a busines that generates a profit of 11m? I wouldnt.

What is ARR without profit in a mature business? TNT is currently sitting at an EBITDA multiple of 15 as pointed out by @pCap - they have acquired business which are all valued at a multiple of up to 5x EBITDA and these businesses are far more profitable than TNT on a revrofit ratio. There is a lot of hope already baked in to the share price.

The acquisitions you mentioned were baked in to the SP long before the end of August, TNT made the acquisitions clear a number of months ago and what those acquisitions will deliver in terms of ARR. Not sure why you think they were not baked in at the end of August. Management have impressed with being able to go through this process efficiently however the value in TNT is not in their ability to acquire businesses, it is in their core business.

Finally, although significant components of the acquisitions are scrip, the capex on the remaining components is high and something that needs to be paid down using profits. I recall an interest rate of 11%, meaning that for a 50/50 debt to scrip deal, a 5.5% ROI will simply be breaking even. TNT's current EBITDA reflects an ROI of ~8%. Not much of a margin.

DYOR