I dont think anyone will complain about a 100% plus rise in a shareprice due to the offer from SOL
The question I have is how much are Ampcontrol and Cromford really worth, surely Ampcontrol with its turnover of nearly $200million and ebitda of $28million, strong solid growth, in the mining services/manufacturing business, has got to be worth multiples of the implied valuation of $67million that its in SOEs books at.
We have ploughed $55million into Cromford over the years and suffered huge losses, to be valued on the books now at $24million, when next year we are told "The combination of improved market conditions in pipe and the expanded plant capacity is expected to significantly improve Cromfords financial performance"
IMO there are better ways to unlock SOEs real value than what we 'may' be offered by SOL, relying on the book valuation on ampcontrol and cromford could see SOL walking with the upside that many have painstakingly waited years to be incubated.
cheers grant
the above is opinion only and written without prejudice
SOE Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
