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Wenzel Downhole Tools Ltd T.WZL



TSX:WZL - Post by User

Post by riverrowon Jul 08, 2013 10:04am
286 Views
Post# 21593797

Previous buyouts support $3 a share buyout price

Previous buyouts support $3 a share buyout priceRaymond James glosses over it but their own data supports a $3 a share buyout.  Look at table 13 Precedent Transactions  we see that the most recent comparable buyout was when Oil States International bought out Tempress Technologies for an EV/EBITDA  (enterprise value to EBITDA) of 6.6.  Assuming an EBITDA of $16 million for WZL  times 6.6 for an EV of roughly $105 million.  With about 35 million shares outstanding that works out to $3 a share.  Who at Raymond James signed off on their recommendation of $2.25 a share?  Ridiculous..  I'ld file a dissenting shareholder thing but I think we'ver run out of time,  I just received the buyout package late last week.  How convenient for the buyers.
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