Originally Posted by
Lizard
Posted below on the BSH thread, but really belongs here...
NTA per "new" PGC share would be about 95cps, with 38cps of PGW shares/cash. But currently, at 31cps for PGC shares and 70cps for BSH, the market is valuing the reconstructed PGC at about 45.6cps - i.e. =(31-70*.268)/.268.
On revenues/profits from continuing ops and cash from PGW (assuming able to be sold in full at Agria equivalent price), I think worth around 60cps, but lots of uncertainty around that figure - fee revenue has fallen dramatically in first half and hard to get a feel for ongoing returns from the likes of Torchlight and the property management arm. Reads to me like the property management side might have a few risky bits to it.
One thing that I did not get is why the distribution of BSH shares was waiting on the Agria bid going unconditional? Also, given that they are intending to distribute all the BSH shares, why do they then mention the possibility of using excess cash from sale of PGW shares to provide equity assistance to BSHL? If they want to separate out, why get back in? Is it just easier to inject new equity if they are not a majority holder or does it mean they are free to negotiate a better price for providing assistance without impairing the value of their existing holding?