AOG 0.00% $2.14 aveo group

Ann: Aveo Enters into Scheme Implementation Deed, page-23

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  1. 1,184 Posts.
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    That's the margin (2-3c p/s) that buyers are working for - they buy at $2.12-2.13 and collect the $2.195-4.5c (div) in Nov/Dec. If you sell today you are discounting the $2.15 you will receive in Nov/Dec by 2-3c so you can have the cash now. Its a fair deal.

    Also as for valuation, the buyer is paying EV/EBITDA of 29 (as per their analysis) which is a good price for the shareholders. The idea is, no matter what the assets are valued at, the return currently is only 100/29= 3.5% on their investment. Given bond yields are under 2% and there is risk in the investment, it is a fair price.
 
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