PAC may use some of the proceeds here to buyback PAC shares at current prices.
Another possibility is to pay a very large second half dividend.
This will generate circa $260M in cash before taxes (119M GQG shares at $2.20) PAC’s market cap is $480M. $260M is roughly $5 per PAC share. Not a bad return from $10M.
While I believe GQG could grow to $3 in time, it will be much better to invest directly into GQG if that is where you want to invest. PAC shouldn’t be a GQG proxy.
I am hoping PAC management can reinvest into smaller boutiques, buy back shares and have too much money that they have to increase dividends in the second half of the year.
Things have the potential to be a very good few years.
This could also set up PAC to be a takeover target. Regal could offer up to $12.50 per share and buy PAC’s businesses at a bit of a discount as their previous offer. They would be able to take on the cash on the balance sheet.
Best of Luck Lost
PAC Price at posting:
$9.29 Sentiment: Buy Disclosure: Held
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