they claim there are 1.7 billion MAP securities. They claim an asset backing per security worth $5.06
Well multiply those and you get about $8.5 billion which corresponds to value of "Total airport investments" as stated on page 15 of the 54 page announcement from 22 May.
Its not at all clear where the debt is in that.
It would appear that Macquarie's claim that MAP units are trading at a 35% discount ( more like 40% at current prices ) to the asset backing is a somewhat spurious comparison.
The financial report announced on 20 February appears to imply that the value of group assets is $24 billion. If this is so, then the $8.5 billion quoted above could be the apparent value net of debts.
OK so further along in the 2007 report, it says they have total assets of $24 billion, liabilities of $15 billion and net assets of $8.5 billion. So the $8.5 billion is net of debt and the Net Asset Backing ( NAB ) is that amount divided by the number of MAP units. I.e. about $5.06 per unit.
BUT !
Of that $24 billion of assets, $10 billion are intangible. So the tangible assets are about $14 billion. The debt is still $15 billion so the net tangible assets for MAP would be about NEGATIVE 1 billion. On a per share basis this would be an NTA per share of around NEGATIVE 60c per share.
That explains why Macquarie prefer to quote the NAB rather than the NTA.
Hope that answers your question !
MAP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
