Agree with you, except my back of the envelope calculations has...

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:

1. 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.
2. 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.
3. HTA’s share of $20.6 billion is $5.15 billion.
4. 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.
5. So, HTA’s share of Merged Co at $5.15 bn minus its $2.4 bn share of VHA debt is $2.75bn.
6. $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.