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2.6¢ hutchison telecommunications (australia) limited

Ann: VHA TPG Proposed Merger, page-50

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taimoor164

374 Posts.

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02/09/18

06:06

Post #: 35353850
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Originally posted by Sojourner ↑

Agree with you, except my back of the envelope calculations has HTA valued at around 20c (based on TPG’s share price). How did you arrive at 28c?

My back of the envelope calculations are as follows:

Enterprise value of Merged Co at $15 billion is calculated with reference to TPG share price which at the time of merger was $6.29.

TPG’s share price is now $8.64, which is 37.4% higher at the time of transaction. That translates into a current enterprise value at the moment for Merged Co of about $20.6 billion.

HTA’s share of $20.6 billion is $5.15 billion.

There is $4.8 billion of debt that will not be included in Merged Co, but HTA would only have half of that at $2.4 bn.

So, HTA’s share of Merged Co at $5.15 bn minus its $2.4 bn share of VHA debt is $2.75bn.

$2.75 bn of Merged Co divided by HTA’s $13.572bn shares gives me a bit over 20c.

Would be interested to know how other people have approached valuing this.

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I guess you are right. My calculation was too simplistic and didn't take 2.4B debt into account. But shouldn't we take Synergy Into account when calculating Share prIce of the merged company? How much should It be?
HTA Price at posting: 13.5¢ Sentiment: Buy Disclosure: Held
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Last 2.6¢		Change 0.000(0.00%)		Mkt cap ! $352.8M

Open	High	Low	Value	Volume
2.5¢	2.6¢	2.5¢	$65	2.534K

Buyers (Bids)

No.	Vol.	Price($)
3	82733	2.5¢

Sellers (Offers)

Price($)	Vol.	No.
2.7¢	20135	1

View Market Depth

No.	Vol.	Price($)
1	80000	0.130
1	40000	0.125
2	58335	0.120
1	7826	0.115
2	60000	0.110

Price($)	Vol.	No.
0.135	30113	2
0.140	436128	7
0.145	61933	6
0.150	111885	6
0.155	68000	2

Last trade - 15.58pm 26/11/2024 (20 minute delay)

HTA (ASX) Chart