Looking in more detail at the NZ sale, in theory the sale should change the Enterprise Value of a company, it does effect long term earnings, and reduce risk, so in practice it does, but just considering the theory.
If we get $500m for NZ, and that amount stays within the company, reducing debt and paying for ASC, in theory it should give the SP a one off boost, separate to any cost/benefit of reduced earnings and risk.
|
Column 1 |
Column 2 |
Column 3 |
| 1 |
|
Before |
After |
| 2 |
SP |
3.00 |
3.80 |
| 3 |
Shares |
622 |
622 |
| 4 |
Market Cap |
1866 |
2366 |
| 5 |
Debt |
1045 |
545 |
| 6 |
EV |
2911 |
2911 |
In practice there is probably an expectation of that increase partly built-in to the current share price already, so lets imagine there is $300m expectation already built-in to the current share price, and $200m not builtin yet, that still gives a potential 10% share price boost (in theory)
|
Column 1 |
Column 2 |
Column 3 |
| 1 |
|
Before |
After |
| 2 |
SP |
3.00 |
3.32 |
| 3 |
Shares |
622 |
622 |
| 4 |
Market Cap |
1866 |
2066 |
| 5 |
Debt |
1045 |
845 |
| 6 |
EV |
2911 |
2911 |
