The acquisition of the ANZ P&I business looks very interesting at these prices.
This table shows the difference in value when the original acquisition was struck and the valuation at the current price.
That is a 70% reduction in the price of the equity raised.
But more interesting to holders and potential buyers is the impact such a reduction has on the next three years.
Based on information provided in the 3 Feb 2020 IOOF announcement "IOOF completes purchase of ANZ P&I and provides 1H20 guidance." I built the following table. The announcement did not provide 1H20 Guidance so not sure what they were doing with that.
The announcement states that UNPAT, including $13 million of pre-completion synergies, and the hit taken from the RC and associated actions would be $63 million. They then say that $68 million of cost savings would be realised of which $13 million have already been included.
So that now looks like a very cheap acquisition for current buyers.
IFL Price at posting:
$3.18 Sentiment: Buy Disclosure: Held
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