The article in the SMH (link below) would suggest that 40.9m shares (35%) of CUP shares held by Count Financial and 100% owned by CBA could well be on the market.
The financial accounts of Count Financial Limited (2016 last set of accounts lodged with ASIC) disclose a loss in 2016 of $11m, not a good return for a $133m investment.
So what are the options for the 40.9m shares which are valued at $26.2m ($0.64 a share) as owned by CBA to maximise the value of their $133m investment in COU by CBA.
a. sell the shares to Kelly and Partners - big ask
b. sell to the KKR backed Findex (BDO accountancy) real possibility. Even a back door listing.
c. share buy back - impossible not enough cash left in CUP
On the basis CUP purchased the accounting firms for an EBITDA of 4 and financial advisers at 5 say an average of 4.5 and applying this to the 2016 EBITDA my guess of $12.725m with a multiplier of 4.5 would put a sell valuation of $57.2m or $0.50 per share less a discount as CBA is a willing seller say 20% would give a take over value of $0.40.
Interesting times ahead with the share price jumping to $0.64 with 2,028,516 shares changing hands from 28-8-2017 (date of release of financial accounts) to 30-8-2017 (directors purchased 362,772 in the same period).
But the financial results of the 2017 were very ordinary so is someone doing a due diligence?
