I still truly cannot believe that this company has a market cap of $1.9 billion. Half of Colonial First State was just purchased for $1.7 billion and that company had less funds under management and less NPAT. KKR happily paid 15.5 times NPAT and the market is stating that we would not get anywhere near that. I have sent numerous requests to analysts to comment on this query and no one can provide any response to it other than they do not see this deal getting the cost synergies IFL suggest it will achieve. So even if IFL does not get the cost synergies, their NPAT would be somewhere around $300 million just by bringing on the One Path and MLC businesses. So the analysts are suggesting IFL, if it went to market to be sold, would achieve around 6 times NPAT. I understand that there are many intelligent people on Hot Copper so I wonder if anyone else can provide feedback on this area of concern. Net Wealth which is a baby compared to IFL is valued at $3.5 billion or nearly twice that of IFL. It just does not make any sense.
IFL Price at posting:
$3.09 Sentiment: Hold Disclosure: Held
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