I've been doing some work on this today. Assuming the deal closes in 6 weeks time/start of June). Shares outstanding: 16.925m
Net Assets reported by Capra FY20: $118.19m NAV share FY20: $6.98 Rough est. of Net Cash generated based on upgraded EBITDA guidance as a % of FY20: $21.737m Rough est. of franking credits generated in same period: $6.45m Est. net assets at deal close:$146.37m Est. NAV/Share at deal close: $8.64 Est. Net assets at deal close (minus right of use assets/leases $70.77m): $75.60m Est. NAV/Share at deal close (minus above): $4.46
Can anyone enlighten me as to what property Capral owns? I presume their manufacturing plants in Penrith and Smithfield but understand these can easily be leased as well. If it is those properties than I doubt they're only worth the FY20 carrying value of $1.2m!
Provided they can sub-let the right of use assets and recover some of the value that way this could easily be a real low-ball.
Unfortunately takeover arb is not really in my risk profile so I won't be spending much more time on this.
CAA Price at posting:
$7.28 Sentiment: None Disclosure: Not Held
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