RE:RE:RE:RE:Endo Files for Chapter 11MrMugsy wrote: As Samira said in the Q&A ... bankruptcy will be a long process.
First we'll wait to see what happens to the company's assets and in who's hands they eventually fall. Then you could have discussions about acquiring the international (Paladin) assets.
If future Endo asset owners see little value putting energy into Paladin, then you might see some discussion. It's fair to assume a future owner will consider divesting of the remaining Paladin assets.
Paladin is stagnant with only $20MM-$25MM (USD) in quarterly sales, so the amount Knight would pay for those assets would be closer to 1.5x rather than 3.4x of annual sales. If they don't get the assets I'm sure they would be fine with that as well. Just an easy way to bulk up Canada with little work - if it pans out for them.
Long process - potentially no deal will be had - never know though - fun to watch !
IMO
gudisgood wrote: CayoLelio wrote: (LO EDITO QUITANDO LA ORTOGRAFA DE ESPANOL)
Hola a todos. Os voy leyendo durante una temporada y servis de mucha ayuda con vuestro gran conocimiento de Knight. Yo tambien estoy en Knight desde hace un year y sigo de cerca los avances de la empresa.
Respecto a Endo me surgen varias reflexiones.
Desde luego sera un gran triunfo para Jonathan traer a Paladin de nuevo a casa, pero, ¿esta Knight capacitada financieramente para comprarlo? Porque en su dia se vendio por 3B Cads. Supongo que esa pata de Endo haya evolucionado bien, pero poniendo que su valor fuera de menos, de 2B por ejemplo, ¿como afrontar su compra cuando Jonathan ha recalcado que no quiere tener deudas en su balance? La unica forma entonces sera una fuerte emision de acciones, pero las acciones ahora no cotizan a un precio excesivo.
Por otro lado, Samira en la conference call pude captar que se mostraba muy abierta a esa opcion de Paladin, y aparte muy positiva con adquisicion en zonas de fuera de sudamerica. Diria que tienen muchas ganas de aprovechar la oportunidad de llevarse Paladin, pero no se hasta que punto puede ser una fantasia o una realidad.
Tambien pienso que otra opcion podria ser comprar las partes de Paladin que mas le interesen a Knight y de esa forma podria ser factible la compra.
Son reflexiones que lanzo al aire, no se que opinareis vosotros de todo esto.
Un abrazo a todos y de nuevo agradecimientos por vuestras aportaciones.
Paladin Labs is not worth anywher close to $2B in its current form. From Endo's latest quarterly report, the International segment was flat y/y with YTD sales of $45M. So let's say the yearly sales are $90M... nobody's going to pay 22 times sales for Paladin (equal to paying $5.7 billion for today's version of Knight).
If we look at Knight's biggest acquisitions:
Knight paid $360M for GBT and it had yearly sales of $240M = 1.5x sales multiple.
Knight paid $172M for Exelon and it had yearly sales of $50M = 3.4x sales multiple.
With that said, I wonder how much Knight would be willing to pay for Paladin?
Yep!
By the way, I had my Exelon numbers wrong (this is what happens when you write some of the numbers from memory instead of checking)... sorry! :)
The price was actually $217M (CAD).
In US dollars, it was $168M + $12M = $180M with $47M in sales... so 3.83x sales.