Why are we selling Zenith for 80 cents a share, page-4

If we do get bought out, and PEP and Apex and Management get their 'first offer' parameters pushed through by the Independent reviewer and IBC, then really what should 'the number' be.

I would think it will be 11% more (since EBITDA guidance has increased 11%) plus the eps that 'will be declared' this year of about 6 cents. Maybe it should only be 3 cents (the Jan2020-Jun2020 only).

Remember their offer was based on Calendar year PAST (Jan-Dec 2019). So let us apply their numbers, their multiples, their offer to the upgraded reality of today with some algebra.

The $1.01 x 11% (upgrade) + 3 cents (new eps) = $1.15. And the distribution should be 96 cents plus 19 cent franked dividend.

This is simply the fair outcome based on PEP and Apex and Management working TOGETHER and using their current offer. If you consider the current offer fair based on the CY19 numbers and not even bidding against each other. I am not using anything other than THEIR numbers and OUR fin year earnings.

I dont think any fair reviewer would 'adjust' the multiple down 11% to match the $1.01 and then ignore the earnings that are accumulating.

So Mr Hoff says $1.15 plus franking. Mrs Hoff has always said 1.2157 (or 1.2175).

This ignores Mr Hoff's optimistic Zenith tend. It is just just using the offer already on the table. Mr Hoff would better like to have the Zenith shares still in 3 years with the price at $2 and franked divvies coming each year.

And I think Southern will tell me I am wrong (too low) as that upgrade should go completely on equity.... and the debt remains the same. He will tell us what the number should be.