Ann: Acquisition Proposal from Hanesbrands-PBG.AX, page-17

As the deal currently stands:
Dividend = 9.4c per share fully franked
Cash offer = 105.6c per share
Total cash offer = 115c; plus 4c added value for investors who hold shares in super funds
Management options presumably vest in the success of this transaction, as appose to waiting several years for the vesting period.

What they are buying:

Dividend per anum expected in FY17 =4c
Recent high pre offer (1st april) = 103c per share
Total value per share = 107c
Plus the added value of future dividends and capital appreciation from this point forward

Total premium of offer to market value 7.48%
It appears that the Directors and HanesBrands are getting the better end of this deal

Forward PE based on share price of 114.5c is 17x (they conveniently left this number out of the offer document). This number seems acceptable for a business with two brands (Bonds & Sheridan) that have sustainable double digit growth.

Everyone should have their Scheme Booklets now, they must be delivered to PBG by the 22 June 2016.

Investors should do their own analysis but shareholders still have the ability to vote this down. It is highly likely given all the work HanesBrands has done that they will come back with a more competitive and less opportunistic offer.

Look at the chart (1 year view) for the 5 days prior to the offer the share price dropped from 98.5c to 86.5c, once it traded in the 80c range for 5 days the offer was made relative to 5 day VWAP.