This valuation is hilarious. Allkems assets are towards the bottom Quartile, Livent towards the TOP. Allkem has more resources and makes more money. On what basis can Kroll possibly conclude Livent is worth 44% of the combined entity?
Look at the valuation comparison, Allkem are getting more value?!
Oh the Income approach. Livent must be contributing more to earnings because their resource base is much smaller.
Nope still less. Hmmmmm so more then double the resource base, and contributes more than 56% of the income. How do we justify this?
Must be something to with share prices?
Nope, on the low end Livent is given an extra 10% in their valuation compared to Allkem. Where does this 10% come from?
Found it! Synergies
So is the 10% extra value for Allkem exclusively for Allkem? I thought it would have created value for both entities? Why is that 10% only applied to Allkem?
This valuation report is dubious at best. Allkem holders are getting absolutely stiffed.
