Based on the news below, TPC fair value abt 50 cents.
Let's check on its financial data:
FA damn poor, I will skip.
Reject unfair offer by Lonbisco, TPC shareholders advised
PETALING JAYA: TPC Plus Bhd shareholders have been advised to reject the offer by London Biscuits Bhd to acquire the remaining shares in TPC for 30 sen cash per share.
Independent adviser Inter-Pacific Securities Sdn Bhd (InterPac) via a circular to shareholders yesterday expressed its view said the offer was not fair and not reasonable after evaluating the terms of the offer.
The TPC board (except interested directors who are deemed interested in the offer and have abstained from making any recommendation) also concurred with InterPac’s recommendation to reject the offer.
InterPac noted that the offer price was below the appraised value of TPC shares using the discounted cashflow (DCF) valuation methodology.
Using the DCF valuation, the range of values for TPC shares is between 46 sen and 51 sen. Hence, the offer price is 35% to 41% below the value range of TPC shares.
InterPac said the offer price also represented a marginal premium to the closing market price as at the latest practicable date prior to the printing of the circular with an unattractive takeover premium.
1 comments:
TPC has been losing money for the last few years. The recent 1st quarter 2010 result also lose money. I wonder how did the discount cash flow analysis come up with fair value of 50sen!!! I think London Biscuits shareholders should celebrate that the acquisition did not go through and avoid the winner's curse. Recent jump in London Biscuit's price seems to prove that. (disclaimer: I still do not like London Biscuits because of its poor balance sheet)