Humm Valuation - What is Sensible, page-81

I meant to post this earlier - TGA released their independent report on the RMC sale of its commercial business.

Couple of interesting points

1. The price is actually above net asset value at 1.19x NAV.

GT re-affirm this valuation by way of peer comparison, but exclude HUM as it has a consumer division (and because it's obviously cheap at 0.3x!).

Or in graph form...

P.S. it's worth remembering the business being sold is lower quality - loss making and at negative growth.

2. TGA hope to become a de facto LIC.

They've already increased their HUM shareholding from 5.6m shares to 5.9m so the extra cash could top this up.

All we need for a HUM re-rate is to just not screw it up.

P.S. SVR will have pulled quite the trick to expect flat EBITDA yet falling NPAT with minimal DA - and talk about line items above the EBITDA line - not one I actively follow (yet) so I shall leave to SHs to untangle that one