Ann: Chairman's Address and Managing Director's Presentation, page-28

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01/12/20

00:33

Post #: 49252112
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Originally posted by Con80 ↑

ReadOnly99 Ithink we're thinking along the same lines.

Last week Rexsh andMir911 pointed out that had WGO accepted Strike’s offer of 1.2 STX shares foreach Warrego share, the value to WGO shareholders on today’s closing pricewould be 32.5cents (ie 27 cents x 1.2).

Because Strike management would have done their due diligence, I have assumedthat 32.5 cents represents fair value. I also think that the STX managementwould have pitched the offer on the lower side of their true value.

I also assume that a merger of the joint venture would have provided synergiesthat would have added more value. Consequently the value of WGO is north of32.5 cents.

But just working on the premise that fair value is 32.5 cent, it indicates apossible 62.5% improvement on today's share price.

I accept that there will be an overhang from the credit raise, but at thecurrent price it surely offers a good buying opportunity for the patient

I’m content to sit and wait for the sp to change. I guess the wait will be aabout 4-5 weeks.

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That was then - both companies are now significantly different to just a few months ago.

E.g. WGO now has 35% more shares outstanding, whilst STX have barely moved.
So you can't take a 1.2 STX / WGO ratio because there's simply much more WGO shares now than when the offer was made.

WGO Price at posting: 20.5¢ Sentiment: None Disclosure: Not Held
9 Upvote

0 Great analysis

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