Final Dividend for 2014/2015?, page-4

So how does one work out the fair value of the combined entity after the "merger"?

My simplistic attempt is:

Combined underlying NPAT for the last 12 mths: $84.6mio
Current PRG shares on issue: 118.9mio
PRG shares to be issued on basis of .55 x PRG per 1 x SKE: = 129.8mio new PRG shares
Total of PRG shares on issue after the merger: 248.7mio

Therefore, based on last years earnings and before any cost/efficiency gains for the merger the e.p.s. would be $0.34cps.

A conservative pe of 8x - 9x gives a PRG price of $2.72 - $3.06.