Well unfortunately as shareholders we wont see any of the...

Well unfortunately as shareholders we wont see any of the proceeds. The $90 odd million will go to reducing debt from $135million. However this will leave the company with $45million in debt and a business generating pro-forma earnings of $27million EBIT. So lets assume this is maintained in 09, we have the following results:

EBIT: $27million
Interest: 8% of $45million = ~$4million
EBT: $23million
Less 30% tax: $16.1million

So we have 104million shares on issue, that means earnings of ~15c. So at 47c that means the forward PE equals 3.3333

The other problem is that the sale price for the distribution arm is at a discount to the net asset value on the balance sheet. So there will be a one off abnormal potentially HUGE loss for this year, or the following year (depending on timing). But this is just an accounting thing, and I think the market will focus more on the real recurring earnings. So the question moving forward is what PE will the market ascribe to the Bisalloy side of things. Could be a multi-bagger in the making here.

cheers.