So how does one work out the fair value of the combined entity...

So how does one work out the fair value of the combined entity after the "merger"?

My simplistic attempt is:

Combined underlying NPAT for the last 12 mths: $84.6mio
Current PRG shares on issue: 118.9mio
PRG shares to be issued on basis of .55 x PRG per 1 x SKE: = 129.8mio new PRG shares
Total of PRG shares on issue after the merger: 248.7mio

Therefore, based on last years earnings and before any cost/efficiency gains for the merger the e.p.s. would be $0.34cps.

A conservative pe of 8x - 9x gives a PRG price of $2.72 - $3.06.