VLA Valuation

MSD are offering 502M AUD or 1.75Per share but think about this:

If Lepu hadn’t of acquired the 36M shares the value of the offer would be theoretically 1.88. How do you calc that well if the Offer value for Equity is 502 you subtract net debt or in this case cash to get to Merck’s assumed NPV of VLA

With Lepu we have 50M cash which makes the deal EV 452 AUD

So that means Merck would of valued VLA at 472M without Lepu and divide by the lower shares outstanding 250mm and you get 1.88.

I think it is a great deal, but always fun to work the math