I can't fault your logic or PE multiples used to value the business. Even if G.S. report is correct in stating that shareholders should not expect to get full implied value in any takeover offer there is still a great deal of headroom between the VRLPA SP of $1.20ish and your $3.30 valuation.
Even factoring in a worst case scenario that a formal offer is not made VRLPA holders can use the minimum distribution of 10.175c per VRLPA annually to work out how high they are prepared to bid the VRLPA shares up to in an effort to make a ST cap gain from any successful takeover.
Even at $1.20 VRLPA offer a MINIMUM annual yeild of 8.47%, so still represent a good income proposition. Even if an offer comes in from VRC at a massively undervalued $2.00 (for example) there would be huge cap gains for VRLPA holders.
Thanks for your research and sharing SP.
Cheers John
VRL Price at posting:
$1.40 Sentiment: Hold Disclosure: Held
