Thought I would do a quick back of the envelope calculation based on VGI and Regal Merger and how much PAC is valued at based on FUM.
First some quick points: Merged entity will have $5.6B in FUM VGI will own 33.3% of merged entity ($256M) Regal will own 66.7% of merged entity, through issuance of new shares ($512M) Total new entity value is $768M based on todays share price.
PAC has a share of FUM at December 2021 equivalent to $15.146B, including 4% share of GQG FUM. PAC’s current market cap is $360M Assume with recent FUM growth this increases to $16.8B, or three times FUM of VGI and Regal Merger.
Would this then value PAC at three times the new merged entity? I know PAC doesn’t exactly earn 3 times as much on FUM as new merged entity, but earnings are increasing.
If valued on a share of FUM basis, this would put PAC valuation at $2.3B or $45 per share.
I’ll have to review expected earnings later tonight and compare the two.
Interested in thoughts.
Best of Luck Lost
PAC Price at posting:
$7.20 Sentiment: Buy Disclosure: Held
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