AIA has a NZ $12bn mkt cap and is trading on a 23 x EV/EBITDA multiple (assuming 2019 aero EBITDA and 2022 property EBITDA), pretty much at a historic high multiple even with the 10yr bond rate much higher than when it reached this multiple in 2019.
A takeover of this kind of asset would need to be at a 30%+ premium, which is minimum $16bn and also a 30x multiple which is silly even for a great asset.
1. Morrison & Co doesn't have even close to that amount of equity
2. Buying an asset at close to a 2% free cash flow doesnt make sense when debt costs are 5%+
Great asset and i'm a holder but I wouldn't be surprised if in 2-3 yrs time we are at a similar price as today.
AIA has a NZ $12bn mkt cap and is trading on a 23 x EV/EBITDA...
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Last
$6.90 |
Change
0.010(0.15%) |
Mkt cap ! $10.15B | |||
| Open | High | Low | Value | Volume |
| $6.90 | $6.94 | $6.82 | $3.514M | 512.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 3729 | $6.88 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.90 | 6732 | 9 |
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| Last trade - 15.02pm 13/09/2024 (20 minute delay) ? |
| AIA (ASX) Chart |