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$4.61 mayne pharma group limited

Fundamentals Are Strong, page-40

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staysolvent

42 Posts.

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15/07/17

22:35

Post #: 25888977
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Originally posted by danginvestor ↑

That's the initial consideration. After later reports from the parent company showed that sales for FY17 would be $US700 to $US750, the purchase agreement let Hikma renegotiate the cash upfront down by $US550m... from I think the initial agreement of $1.1B.

So final price for Roxanne was $2.1B, at operating margin of 35% like you quoted up there, that's EBIT of .35*700 = $US245m, or 8.6 P/EBIT.

Maybe paid practically $AUD1B [when you include the transaction, working capital, technical transfer] for a portfolio with FY17 sales of $US237m. EBITDA margin at 50% [they reckon] put earnings at $US118.5.

At current exchange rate, that's price of $US780m to $US118.5 or 6.58.

So it's cheaper on that PE measure. Here's the BUT...

Hikma's purchase only dilute its ownership b 16.7% compare to Mayne's issuing the equivalent of some 80% of existing shares.

Hikma immediately become the top 6 generic company vs Mayne's top 25.

Pipeline potentials of some US41b vs $US7b.

Get the labs, the R&D team and continued shared interests from the seller.

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Thanks for the info. I agree that was a good acquisition.

MYX Price at posting: 98.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last $4.61		Change 0.010(0.22%)		Mkt cap ! $392.1M

Open	High	Low	Value	Volume
$4.60	$4.67	$4.46	$913.9K	200.9K

Buyers (Bids)

No.	Vol.	Price($)
1	842	$4.58

Sellers (Offers)

Price($)	Vol.	No.
$4.65	1200	1

View Market Depth

No.	Vol.	Price($)
1	842	4.580
1	842	4.570
1	842	4.560
1	842	4.550
1	842	4.540

Price($)	Vol.	No.
4.650	1200	1
4.660	1842	2
4.670	842	1
4.680	842	1
4.690	842	1

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