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$9.35 duluxgroup limited

Ann: DuluxGroup recommends acquisition proposal by Nippon Paint, page-43

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Just_a_guy

5,420 Posts.

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28/04/19

10:39

Post #: 38292246
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Originally posted by Value101: ↑

If you read the DLX announcement the consideration is $9.80 including a full franked dividend of up to $0.41, which would include franking credits of $0.176. This means that holders will receive cash plus franking of up to $9.976.

Based on the current share price of $9.73 that is a return of 2.53% for holding the stock for a few more months until the transaction completes. Mid-August is the expected completion at this stage.

So if you buy today at $9.73 and lets say it take 4 months to get your $9.976, then the annualised pre-tax return is close to 7.6% for that period assuming:
1) zero transaction costs;
2) the transaction completes as and when expected;
3) the interim dividend is $0.41 full franked; and
4) you can use the franking credits.

Compared to cash in the bank, some may view that as an acceptable return for the risk.

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also I’d prefer to pay the capital gains tax next financial year rather than pay the tax man early. So I’ve decided to hold on until at least July.

DLX Price at posting: $9.85 Sentiment: Hold Disclosure: Held
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0 Great analysis

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