RE:RE:RE:RE:RE:RE:Would shareholders be upset with $0.70 buyout?snajem wrote: 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
Last I recall, this was a failed ATM network business with some ATM machines in Great Canadian Gaming properties. They acquired a majority stake in WGI back in 2006. TNA had 9-11 card rooms at one point in time. Today they have 4. Transactions speak for themselves.
I'd guess some founders are ready to exit.
The sale price may not be as lofty as some here expect.