Hi AllThought I would do a quick back of the envelope...

Hi All

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