Horwath Porter Wigglesworth Ltd has produced a 118c valuation of the shares in Shotover Jet Ltd, 15c more than the price Ngai Tahu has offered for the outstanding shares in the company.
It’s the 3rd valuation in a contentious takeover and would affect 1.2 million shares Ngai Tahu bought after issuing an acquisition notice at the end of February.
Grant Samuel issued its 2nd independent expert’s report in December, valuing Shotover in a range from $41.9-47.9 million, or 97-110c/share, with a midpoint 103c/share matching the offer price for the 8.5% of the company Ngai Tahu didn’t own.
On 26 February, Frankham Lyne Ltd came up with a valuation range of 102-112c/share, which put the bid at the bottom of its “fair & reasonable” range.
Horwath Porter Wigglesworth considered the performances of individual business which currently either trade at an ebit loss or break even. “In particular, we regard the Hollyford Track and Rainbow Springs entities as under-performing business units worthy of specific attention.”
The consequence of that assessment was a $51.05 million valuation of the whole company. It adjusted the Hollyford Track value upward by $1.84 million, or 4.2c/share, gave Rainbow Springs an alternative use value of $2.5 million, or 5.8c/share, and added $2.2 million, or 5.1c/share, for ash surplus to operational requirements.
Horwath Porter Wigglesworth was required to produce a single-point value rather than a range.