My question for the Revenue was not just about the future but about what is current EBIT or NPAT of the current plant that they will acquire as a partner ! when you buy an asset which is in working condition and generating revenue then purchase price include valuation based on current revenue generated by the plant plus tangible assets plus goodwill.... IMO.
You don't pay for money you save by buying the asset as you only need to pay what an asset is worth today as future value is something you will be creating.. ! Anyone who believes that MRC should be paying premium price because they will accelerate revenue generation is probably never made a deal to purchase an asset or in fairly land.. .IMO.
You as a shareholder shouldn't be picking up numbers and showing what will be revenue but it is the company who should be telling their investor why they are thinking of investing 20million euro with detail breakdown of revenue generation... IMO.
Re Value of plant:
MRC is buying an existing asset which is OLD to my understanding but correct me if I am wrong and this asset was built last year .. !
Talga example that you provided is a new asset .. a brand new asset with full depreciation plus warranty on everything that was installed in that factory.. ! You can always hire skilled & experienced employees to operate your plant .. IMO.
Did Talga talk about 50% ownership of plant for 22m? or was it 100% ownership for 22m? Here MRC proposing to buy only 50% of an old asset.. and paying roughly 31m AUD for 50% partnership so basically they agree to 62m value of an old asset... compare to 22m brand new asset that Talga got.. in your example... so roughly 280% high price for old depreciated asset with 50% partnership... IMO.
Re China:
China is the manufacturing hub in the world... so shutting door to china is the issue as European car manufacturer can always go to china to get their products to get competitive price advantage point of view... also why have strategy to restrict yourself to the key purchaser in the world?
Last and important thing :
This may be the best deal for MRC but my point was that company failed to explain in their announcement (obviously they don't need to show their 1000 page due diligence document) a clear summary of asset value they are acquiring, future profit, payback period, advantage of doing in Norway and restricting to china supply etc. it is not up to shareholders to assume figures and make-up their mind on things are good... IMO.
MRC Price at posting:
25.5¢ Sentiment: None Disclosure: Not Held
(20min delay)