I've struggled through Appendix A now and its quite a detailed description of how they valued the company.
They did one bit of analysis where they looked at how the mature ANZ part of the company is - and assuming that the rest of the world gets to about the same point in the next 10-14 years. However they seemed to ignore the connected cost module - and from memory that was going to double the TAM? If that's really the case that means their $7-$8 estimate significantly undervalues the company. Also even if you think $7.5 is a fair price then $7.8 is only a 4% premium...
I wonder if we will hear more about connected cost in the half yearly report?
I'm tempted to vote against it, partly because I'm not convinced on the price and partly because I'm having difficulty finding another company like this on the ASX that and is not trading at a huge price. The ACX price may drop in the short term if this doesn't get up (a buying opportunity), but in the long term I think this is a winner.
ACX Price at posting:
$7.73 Sentiment: Hold Disclosure: Held
