$54 million
I still do not fully understand the transaction other than as a way for the controlling shareholder to tap cash from Corby. I think they referred to the $54 million being sent their way as "security" for the 5 year contract. This means they do not have to recognize the $54 million as income to them -- but they have the $$ nevertheless.
So Corby gets the right to sell Pernod product for the next 5 years....but given the market cap of Pernod ($50 billion) -- the forward Pernod PE ratio currently (44!) -- thge forward Corby PE ratio (17) -- a little extra income coming into the Pernod side from acquiring Corby and its labels translates into beau coup bucks.
All of Corby's net annual income of $25 million x 44 = over $1 billion in market cap increase for Pernod and Pernod shareholders at the same forward PE ratios. To boot - Wiser is a great and growing brand touted by Pernod for its double digit revenue growth. So it is worth more in the future.
I only see this ending one way -- Pernod gets the $54 million cash "security deposit"now - then towards the end of this year acquires the balance of Corby for $300 million - then has a ne t boost to its markiet cap of $700 million. Now Pernod just keeps the extra $54 million security deposit - as it is all one entity.
This seems clear to me. If it does not seem Clear to Pernod management, they need to hire me.
I can make them a lot of money.
Bye for now -- off to have a beer.