KKR PREPARES BID, page-66

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jacinkoland

383 Posts.

90

31/03/17

01:26

Post #: 23756142
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Originally posted by Roy2U ↑

One thing is for sure, if KKR are seriously planning a takeover offer, they will be very thankful that Glaucus has targeted QIN.

Valuebuddy 89 is spot on with his valuation, in my opinion. I would even add additional value for the business of managing the forests for the other owners of the plantations, which KKR would continue managing. This aspect of QIN's business is a cracker: no possible competitors, locked in customers, growing forests etc. Management fees have increased by 60% in 2 years to June 2016 and continue to grow rapidly as forests expand and fee rises are implemented. What value would one put on such a business, which is already earning $28.8M revenue in FY16, and predicted $35M in FY17?

I am with JID here, and would be very disappointed with $1.70 in any takeover. All of those who contributed equity to develop this business are being short changed now that the business is within five years of maturity.

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yes I think $3-4 a share is the minimum to get people thinking about selling. And I didn't say accept the offer- I said start thinking about it at that price! I think the more negative attention Glaucus bring, the stronger the spotlight gets shone of the company, the more the massive value will be apparent to multiple significant parties.

QIN Price at posting: $1.09 Sentiment: Buy Disclosure: Held
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