HUM LFS offer much too low, page-25

First 25 Last

Share
Profile

Follow
jin12345

2,708 Posts.

44

08/01/22

18:58

Post #: 58727219
Share

Originally posted by sharetrader: ↑

The more I look at the numbers the more I can't understand the situation.

They talk about commercial leasing profit which is $22.3mil so the HCF cash profit is $68.4mil minus $22.3mil being $46.1mil being bought for $335mil.
- but taking the tax paid of $21.8mil split to HCF is another $14.69mil of cash income from the business so $46.1mil plus $14.69mil or $60.79mil or around 5.51x multiple.
- then synergies of $50mil to $70mil if LFS and HUM combine, which should be shared between acquirier and target. This should add another $137mil to $192mil of consideration at the same multiple at 50%
- the 5.51x multiple of cash profit before tax can't be justified as being inclusive of the proposed synergies.

At least $335mil in cash and $137mil to $192mil of scrip should at least be part of the deal.

Not saying 5.51x as a number is right but the lack of numbers in the annoucements to justify is in stark contrast to the investor strategy day when we were talking multiples of revenue forget multiples of cash profit before tax.

LFS have sought Symble, they had $54mil in loans and if i read it correctly their profit was a loss of $1mil for $200mil purchase as a business that has only been around for 25months. If those multiples are applied to HUM well we be looking at dollars, offcourse I note there are other reasons for the purchase of the platform... but it cant be that justified the large variance for a loss making business with $54mil in loans at $200mil consideration and buying HUMM HCF a profit long tenure business as a low multiple.

dyor

Expand

agree. They paid $200mil for symple and value humm Consumer business for $335mil ! What a joke
dyor

HUM Price at posting: 91.0¢ Sentiment: Hold Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

PME

Pro Medicus snaffles 5-year contract extension worth $32M for RIS technology

JBY

James Bay latest lithium player to pivot to other metals amidst lithium slump

ASX Market Update: Index pulls back from record highs | October 16, 2024

BM8

Battery Age Minerals gets set to capitalise on critical mineral demand

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

There are more pages in this discussion • 282 more messages in this thread...

First 25 Last

Add HUM (ASX) to my watchlist

(20min delay)
Last 83.0¢		Change -0.010(1.19%)		Mkt cap ! $408.1M

Open	High	Low	Value	Volume
81.0¢	84.3¢	81.0¢	$150.5K	180.5K

Buyers (Bids)

No.	Vol.	Price($)
1	5800	82.5¢

Sellers (Offers)

Price($)	Vol.	No.
84.0¢	15690	3

View Market Depth

No.	Vol.	Price($)
1	5800	0.825
2	42385	0.820
3	16849	0.805
4	97500	0.800
1	700	0.790

Price($)	Vol.	No.
0.840	15690	3
0.845	100800	3
0.850	123959	7
0.855	71904	2
0.860	115882	3

Last trade - 16.10pm 16/10/2024 (20 minute delay)

HUM (ASX) Chart

HUM LFS offer much too low, page-25

Pro Medicus snaffles 5-year contract extension worth $32M for RIS technology

James Bay latest lithium player to pivot to other metals amidst lithium slump

ASX Market Update: Index pulls back from record highs | October 16, 2024

Battery Age Minerals gets set to capitalise on critical mineral demand

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

HUM LFS offer much too low, page-25

Top Stories

Pro Medicus snaffles 5-year contract extension worth $32M for RIS technology

James Bay latest lithium player to pivot to other metals amidst lithium slump

ASX Market Update: Index pulls back from record highs | October 16, 2024

Battery Age Minerals gets set to capitalise on critical mineral demand

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News