RE:RE:RE:RE:RE:Would shareholders be upset with $0.70 buyout?a few corrections
- net cash is actually U$28MM, and that's after backing out the U$3.5MM deposit, and real estate term debt
- properties are worth at least U$10MM if we rely on depreciated book value, which is conservative given the assets were bought many years ago.
As for the value of the operations ... just slapping a random $30MM tag is overly simplistic. Operations are generating U$11-12MM EBITDA per year net of market rent. You really think these assets trade for 2.5x EBITDA? A basic restaurant generating less than $1MM EBITDA fetches a higher multiple. Let's be realistic but conservative ... and pick the bottom of the precedent transaction range for these cardrooms, which is 5x .. so that's U$55-60MM
so the correct values are
- U$28MM cash
- U$10MM Real estate
- U$60MM operations
= U$98MM x 1.31 USDCAD = C$128MM / 123.8MM shares
= C$1.04 per share
very basic stuff