I've done some back of the envelope calculations and I see that with the cash balances of SVW and SWM, and the 35% stake that SVW already has in SWM, wouldn't there be a floor price where the takeover is a high possibility?
I know it would be hard to get shareholder approval, but the remaining 65% of the market cap, with a 25% premium at SWM market price of 55c is ~$500m adjusting for SWM cash balance. Both companies have averaged over 500m in FCF combined last financial report, and SWM is actually a good cash flow earner, making a debt based acquisition viable.
I know 55c is still a 30% price away, I'm just looking at the worst case scenarios in this stock, and whether this would be a feasible factor in a floor for the stock.
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Last
17.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $269.3M |
Open | High | Low | Value | Volume |
17.5¢ | 18.0¢ | 17.0¢ | $177.0K | 1.009M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
10 | 841944 | 17.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
18.0¢ | 740042 | 14 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
10 | 841944 | 0.170 |
6 | 1131798 | 0.165 |
8 | 744265 | 0.160 |
2 | 17400 | 0.155 |
17 | 143816 | 0.150 |
Price($) | Vol. | No. |
---|---|---|
0.180 | 740042 | 14 |
0.185 | 445987 | 7 |
0.190 | 559750 | 4 |
0.195 | 62388 | 4 |
0.200 | 187881 | 9 |
Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
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SWM (ASX) Chart |