" As we carry out these acquisitions, we intend to utilize over $700 million in capital and operating losses we have available to enhance our after-tax returns. In addition, we will continue to opportunistically utilize our NCIB to repurchase our common shares." Aimia has $332 million of operating tax losses to apply to and offset operating cash profits from these putative capital investments in high cash flowing companies .
Assuming acquisitions are made at 2 times revenues and tax loss protected Ebit of 25%, annual free cash flows to the bottom line would be about $ 85 million or so .
About $0.95 per share in cash added to the bottom line per year.
A robust cash flowing business with a sparkling balance sheet and oodles of cash, paying a peer average annual dividend yielding 5% would easily trade at 20 times free cash flow.
This implies a fair value of about $18 per share, subsequent to the planned investing of $700 million in sturdy cash flowing businesses.
Illustrative, but perhaps in the right ball park..