The business case seems pretty straight forward - assuming $80m NPAT this year then add 1) improved bigger bank funding of 150bps on $10.5b; 2) savings on listing and HO costs of $20m; 3) less tax on 1+2 = $204m NPAT if I'm not making an obvious error.
NAB for example is trading at 15x PE so could do a share deal easily at 10x PE on JDO and be better off, that would be $2040 market cap or 45% above the current level at $1.87. That's not taking into account future growth opportunities or that a number of JDO shareholders would be wanting above listing price.
Agreed that the key question is ability to cultural merge (??) and the strategic rationale for each bank.
Takeover speculation, page-9
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Last
$1.30 |
Change
-0.015(1.14%) |
Mkt cap ! $1.458B | |||
| Open | High | Low | Value | Volume |
| $1.29 | $1.30 | $1.29 | $162.8K | 126.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 7 | 11572 | $1.30 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.30 | 6116 | 14 |
View Market Depth
| Last trade - 10.21am 29/05/2024 (20 minute delay) ? |
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Last
$1.30 |
Change
-0.015 ( 1.33 %) |
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| Open | High | Low | Volume | ||
| $1.30 | $1.30 | $1.30 | 7530 | ||
| Last updated 10.43am 29/05/2024 ? | |||||
| JDO (ASX) Chart |