PAC 0.99% $10.20 pacific current group limited

The Crypto link to PAC via VPC

  1. 2,752 Posts.
    lightbulb Created with Sketch. 1118
    Hi Everyone

    While the following is likely to come to fruition in the second quarter of this year, I was interested to explore given the link to cryptocurrency link and the steep rise in Bitcoin recently. Bakkt in summary is an app where you can combine all of your assets (including crypto currencies, loyalty points, cash, etc) and use them to invest, redeem or pay debts, amongst other things. Here is a table of Bakkt functionality:
    https://hotcopper.com.au/data/attachments/2905/2905035-f4160714226927dab3fc570dff709d58.jpg

    See here for a good summary of the deal and further information on Bakkt:
    https://www.victoryparkcapital.com/wp-content/uploads/2021/01/Bakkt-Management-Presentation.pdf

    What is the link?
    PAC 24.9% owned boutique VPC raised the SPAC listed on Nasdaq (VIH:NAS) and this SPAC will own 8% of BAKKT at time of IPO. VPC will own 2% as the SPAC sponsor (PAC's share will be 0.498%).

    The implied valuation of this is:
    > The deal valued Bakkt at $USD2.1B at the time of announcement in January 2021. VIH shares have since increased from $USD168M to $USD473.1M (Market Cap of VIH today).
    > If VIH value is taken as the underlying valuation of Bakkt, at 8% of the value - $USD473.1M * 12.5 times (or 100/8) the Bakkt valuation is $USD5,913,750,000
    > VPC attributable ownership value is $USD5,913,750,000 * 2% = $USD118,275,000
    > I have previously posted what the deal was initially worth to VPC here (2% of $USD2.1B is $USD42M):
    https://hotcopper.com.au/threads/vpc-back-bakkt-with-spac.5852582/Difference is an extra $USD76.275M
    > PAC attributable ownership value is $USD5,913,750,000 * 0.498% = $USD29,450,475 or @77.5 AUD/USD exchange rate = $AUD38M
    Not bad for a company we invested $AUD94.6M in 2.5 years ago. While we have had to wait a while, VPC is starting to kick some interesting Special Opportunity goals.

    Any profit attributable will likely flow to PAC shareholders next year.

    Interested in others thoughts.

    Best of Luck
    Lost
 
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Last trade - 16.10pm 29/03/2024 (20 minute delay) ?
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