Over all good news I think.
Positives: Larger more diverse company with National Footprint
Movement away from mining/blast to Civil/Urban
EPS accretive (60% according to page 7 of release) They only paid 1.6x EBITDA
when NRW trades at 3.7x EBITDA.
Debt load is not excessive
Negative: More debt (negative for existing note holders)
More exposure to Coal
Potential culture clash with management at Golding
Completion is subject to condition precedent...
Had to pay over NTA for aquisition (goodwill)
New NTA actually declines to .44
Valuation: Total book value (including goodwill) stays at .62
combined ebitda of $112mm
combined NPAT of $54.3mm
370mm new shares outstanding
assume ebitda multiple of 3.7x
assume NPAT multiple of 7x
3.7x112/370= $1.12
7x54.3/370= $1.02
My guess is that there will be plenty of sellers ahead of $1.. but maybe we will get there in the next year if the industry fundamentals stay positive.
Guys.. that is my first and quick take.. I hope I have not made any errors.. if you see any please point them out, and don't forget to do your own research..
Full Disclosure.. I own NRW shares and NRW 7.5% Notes.
Over all good news I think. Positives: Larger more diverse...
-
- There are more pages in this discussion • 15 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add NWH (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$3.37 |
Change
0.020(0.60%) |
Mkt cap ! $1.533B | |||
| Open | High | Low | Value | Volume |
| $3.33 | $3.39 | $3.30 | $5.853M | 1.746M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 385 | $3.36 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.38 | 21954 | 6 |
View Market Depth
| Last trade - 16.10pm 25/07/2024 (20 minute delay) ? |
| NWH (ASX) Chart |