Lantrovison $3.25 offer

January 27, 2016 at 10:24 pm Leave a comment

Disclaimer: I am vested in Lantrovision, so opinion will be biased.

A japanese company Mirait coprporation just offered $3.25 for Lantrovison shares subject to a scheme of arrangement of which the main condition is not less than 75% of shareholders holdings present or via proxy, voting in favour of the offer in an EGM to be held later.

Lantrovision has a solid balance sheet full of cash free of debt, 91.2million as of 31st Dec 2015 or approximately $1.69 in cash.NAV is $2.21 as of 31st Dec 2015.EPS is 17cents for first half of fiscal yr 2016.Thus, the japanese company is only paying $1.56 ($3.25-$1.69) for an estimated EPS of 34 cents (annualised earnings), ie. ex-cash PE ratio of 4.6, very cheap, provided that the cash does not dwindle and earnings remains solid. Even if earnings is stuck at 17 cents per share for full year, ex-cash PE ratio is only 9.2.

Fingers crossed that there is a competing offer.


Entry filed under: Investing, Watch your step.

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