dte25 Jul 2014 14:51
borrowed from hotcopper courtesy of poster
Huge volume sold today after weeks of very low volume.
Support gone and 15c looking feeble.
The market has made it pretty clear what they think of the deal.
Dart has gone from a company rebuilding and going places back to the scrap heap under the New Hope owned board. What a disaster they have been.
No vision, no plan, No Hope.
A vote for their dodgy takeover is a vote to give away your investment.
Vote NO.
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What makes it worse, the way I read it, for those lucky enough to make a profit, if you've held shares under 12 months those shares are not eligible for reduced tax benefits as stated in Tax section of Scheme.
It all stinks and I'm still wondering what the hell NHC see in this amalgamation. Igas £200mil in debt. No thanks,
abalone
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I haven't ready too many independent valuation reports, but most obvious thing that sticks out to me is the use of 14% discount rate to get net present value of future earnings. This seems high to me. And it's selection somewhat arbitiary. If they choose say 10% it would give a radically different valuation on DTE and make the deal seem much less favourable to DTE shareholders. From what I understand, the discount rate is equivalent to the opportunity cost of having your capital held in DTE versus another form. So at 14% discount rate, they are saying that DTE is worth the 200-odd mill if we assume cost of capital is 14%. If cost of capital is 10% for example, the figure grows, as 100 mill recieved over next 10 years becomes discounted less to get the NPV in todays dollar terms. I'll try and crunch some numbers using a different 'assumed' discount rate over the weekend.
From Deloitte themselves, 10% rate for oil and gas is generally considered appropriate:
http://www.google.co.nz/url?url=htt...MQFjAA&usg=AFQjCNEmt59k2ZpEzxZpmNlGDLKrBSx8SA
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from memory in the scheme, DTE have 195Millon of tax loses, and estimated 12 Million in costs to wind up, which the scheme put in as no value, as there is nothing to deduct it against.
As a DTE holder I would like to have an option attached for all DTE holders will have access to a listing or sale of DTE Australian Assets. IGAS don't miss out on anything as they are in the scheme at no value and IGAS are UK based.
IGAS could list the assets as IGAS ASIA, and ex DTE holders would have a holding in it.
I could see there is value for a Aust based Gas company to buy DTE Australian Assets to gain a $195 Million Tax loss.
Just my view, not a recommendation.
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