Current dividend reserve adjusted for the March dividend was enough for a special dividend to be paid out under the scheme of ~$1.42 for franking credits of ~$0.61, so on a tax adjusted basis there's ~$7.61 of value on my calcs.
At the midpoint of revised guidance ($26m Trading EBITDA), the offer is priced at 2.9x EV/EBITDA. Worth checking out Steel and Tube Holdings across the ditch (STU.NZ) as a relevant comp.. On an asset basis, Allegro are really only paying for working capital with the balance of PP&E offset against some lease liabilities and employee benefits provisions. At current earnings it's 12 years tax free.
Not really seeing Allegro consideration offering any benefits above and beyond the intrinsic value shareholders already have. Effectively a nil premium here
CAA Price at posting:
$7.55 Sentiment: Buy Disclosure: Held
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