At yesterdays closing prices, the upcoming TNT distribution is worth 2.623 cents per PSZ share. Accordingly, at PSZ's closing price of 4.5c, the remaining business is valued at ~1.9 cents.
PSZ have previously announced that the remaining businesses (before potential Glass demerger and corp costs) have an EBITDA of $6m. Even if we conservatively assume that the Glass sale and corporate costs reduce group EBITDA to $3m p.a., the EPS should still be about 0.6cps. Accordingly, the remaining business is trading on a P/E of just over 3x.
For those falling over themselves to get TNT shares, seems like a better avenue is to buy PSZ before next Wed and get the significant upside in both companies.
On an related note, I sincerely hope the Glass divestment does not go ahead. The proposed sale price to insiders simply cannot be justified by anyone who objectively knows anything about asset valuation. A valuation of $5m+ could potentially be justified, but I would prefer they held onto it as it has significant growth potential (as I'm sure the potential acquirers are aware).
PSZ Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
