RE:RE:RE:Fantastic time to buy at less than tangible book per shareJust a reminder to investors the value of BIAL, which is valued at more than the current shareprice at the moment:
Later in 2019, Fairfax India signed definitive agreements with an investor whereby it will transfer 43.6% of BIAL out of the 54% that it owns in BIAL to AIIHL and the investor will pay about $135 million to acquire from Fairfax India an 11.5% interest on a fully diluted basis in AIIHL. This will result in the investor indirectly owning approximately 5% of BIAL. The transaction values 100% of BIAL at $2.7 billion.
Fairfax India intends to complete an IPO of AIIHL, targeted to value 100% of BIAL at $3.0 billion (a targeted valuation of $1.3 billion for 100% of AIIHL). A ‘‘ratchet’’ mechanism has been agreed with the investor whereby if the IPO is completed at a valuation of AIIHL below $1.3 billion, the investor will receive incremental shares of AIIHL to compensate for the difference between that actual valuation and $1.3 billion
Even with everything going on, the intrinsic value of critical infrastructure assets are not this volitile. Over time, the long-term value of FIH's portfolio will be reflected in the share price. At this point you can buy a piece of a great asset in BIAL, and get their entire public portfolio for free.