PRG-SKE Combined-Co: Some Pro Forma Numbers, page-11

I think we are seeing institutional buying coming in to Programmed expecting a deal .

I would not be surprised to see PRG do a cap raise at $3.00 to fund a 50% cash 50% scrip bid for SKE .

On the basis the PRG stock is $3.0o , paying equivalent to $1.85 for SKE knowing 1+1 will equal 3 makes sense and is mont expensive to PRG.

You would think SKE holders will most likely hold the scrip post offer on that basis

A lot of SKE holders would still be holding on to large losses from a $4.00 share price just over 2 years ago when PRG was trading less than $3.00.

PRG has just announced 27 c earnings per share , add SKE to those earnings with the synergies it brings you could easily see 35 cents EPS on a larger share base in year 1 post merge.

SKE had half year underlying earnings of 11 cents per share , and have not had a profit downgrade as yet , so are not expensive at $1.85 given the synergies of a combined entity.

A PE of 10 on 35 cents EPS would not be unreasonable post merge expectation