Interesting developments in the Australian drilling industry with Perenti in a merger/buyout with DDH1 yesterday. The agreed price is at 3.4 x EBITDA which is quite low. Multiples of 5x EBITDA would be considered the norm in a favourable industry backdrop (which we have). A similar multiple applied to MSV (without having seen the FY 2024 4th Qtr results) of say normalised EBITDA at $40million would put a price of $136million less a reduction for debt to say $120million. The CEO has said the business should be earning EBITDA $50million. Nathan Mitchell has publicly stated up to $60million in the current market conditions. Taking the lower number, by EOFY 2024 they are targeting a reduction to $15million in debt on the balance sheet. In that case MSV on the DDH agreed multiple would be worth around $170million....that's around 77c a share. There's a lot of potential value in the business if they get it running efficiently & as stated the multiple DDH will be transacted upon is quite low historically.
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Last
40.5¢ |
Change
0.005(1.25%) |
Mkt cap ! $85.43M |
Open | High | Low | Value | Volume |
40.0¢ | 40.5¢ | 40.0¢ | $31.72K | 78.93K |
Buyers (Bids)
No. | Vol. | Price($) |
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4 | 48193 | 39.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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40.5¢ | 5786 | 1 |
View Market Depth
No. | Vol. | Price($) |
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4 | 48193 | 0.395 |
5 | 29695 | 0.390 |
3 | 44165 | 0.385 |
5 | 119530 | 0.380 |
2 | 40000 | 0.375 |
Price($) | Vol. | No. |
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0.405 | 5786 | 1 |
0.410 | 39809 | 1 |
0.415 | 64093 | 1 |
0.420 | 45800 | 3 |
0.425 | 41528 | 2 |
Last trade - 13.58pm 24/05/2024 (20 minute delay) ? |
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Last
40.5¢ |
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Change
0.005 ( 1.25 %) |
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Open | High | Low | Volume | ||
40.5¢ | 40.5¢ | 40.5¢ | 3994 | ||
Last updated 14.16pm 24/05/2024 ? |
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