Quick back-of-the-envelope calculation using Jeremy Raper's assumption of HK$250mn cash equivalent on Greentech's balance sheet (even though I'd be cautious with that assumption given the shitty corporate governance):
How much would MLX be willing to pay for Greentech? I'd say the max bid should be capped by 82% (Greentech ownership of YT Parksong) of MLX EV at A$0.40 (current max bid for buyback). That would be around A$110-130mn. That in turn would imply a Greentech share price of around HKD 60-68 cents. At this price I'd still consider a deal a bargain as this is not simply a 1+1=2 situation but the benefits of controlling Renison go far beyond that.
MLX Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
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