This Nigel Wilson article poses questions of just what is a fair value to be placed on AZA.
He states that the ITOCHU deal values the BMG JV at about double analyst's expectations and that it is roughly 3times bigger than first thought.
The ITOCHU deal values the project at $1.23billion. AZA's 40% on 125million shares issued (?) therefore is valued at $3.9/share.
If that is what ITOCHU is prepared to pay for the assets - that is: the market value - why isn't AZA going to be radically re-rated? Is this another case of the Aust market under valuing its own? What is stopping a raid on AZA? Or more seriously, is my logic incorrect?
AZA
anzon australia limited
