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SMLL
Total shares as at 31st December 2012 - 74,576,979
Parent company PLC holds - 67,455,022 (90.45%)
Current price - 41
Stated Capital - Rs. 1,580,861,658/-
As of 31-12-12 financials;
NAV - 26.14
9 months EPS - 3.33
Annual EPS (projected using normalised eps of 1.11 per qtr) - 4.44,
At Current price - 41, this trades at P/E of 9.23 (41/4.44)
PBV = 1.57
PLC
Total shares as at 31st December 2012 - 1,635,000,160
Parent company People's Bank holds - 1,172,766,337 (75.18%)
Current price - 13.60
Dividend (0.75)(FY 12/13) -Rs. 1,170,000,120/-
Stated Capital - Rs. 12,958,000,800/-
As of 31-12-12 financials;
NAV - 11.29
9 months EPS - 1.24
Annual EPS (projected using normalised eps per qtr) - 1.65
At Current price - 13.6, this trades at P/E of 8.24 (13.6/1.65)
PBV = 1.20
When PBV is considered both are trading at an attractive price now because below 2X of PBV for finance companies are considered to be of worthy.
However, announcement of PLC amalgamation with SMLL and subsequent offer of 3 PLC shares for 1 SMLL share means,
74,576,979 SMLL shares should be multiplied by 3 making it 223,730,937 PLC shares.
But they said minority share holders, so accordingly 7,121,957 SMLL shares will have to be converted to PLC shares
[Total shares - parent shares - (74,576,979 - 67,455,022) = 7,121,957]
Which means new PLC shares - 7,121,957 x 3 = 21,365,871 will be added to the existing 1,635,000,160 shares.
What will happen to the Stated capital and share price in the market?
Literary speaking, Stated Capital of Rs. 12,958,000,800/- of PLC (as at 31st December 2012) represents 1,635,000,160 shares.
Similarly Stated Capital of Rs. 1,580,861,658/- of SMLL represents 74,576,979 shares.
So new stated capital should be;
(12,958,000,800 + 1,580,861,658) - 14,538,862,458.
But the above represents how many shares now?
Is it 1,635,000,160 + 21,365,871 = 1,656,366,031 (1.65 Bil)????
Then what will happen to the parent shares?
Is this mean somewhere around 12-12.70 is the new market share price of PLC??????????
Hope someone can clarify where the share price should stand after the amalgamation....
Total shares as at 31st December 2012 - 74,576,979
Parent company PLC holds - 67,455,022 (90.45%)
Current price - 41
Stated Capital - Rs. 1,580,861,658/-
As of 31-12-12 financials;
NAV - 26.14
9 months EPS - 3.33
Annual EPS (projected using normalised eps of 1.11 per qtr) - 4.44,
At Current price - 41, this trades at P/E of 9.23 (41/4.44)
PBV = 1.57
PLC
Total shares as at 31st December 2012 - 1,635,000,160
Parent company People's Bank holds - 1,172,766,337 (75.18%)
Current price - 13.60
Dividend (0.75)(FY 12/13) -Rs. 1,170,000,120/-
Stated Capital - Rs. 12,958,000,800/-
As of 31-12-12 financials;
NAV - 11.29
9 months EPS - 1.24
Annual EPS (projected using normalised eps per qtr) - 1.65
At Current price - 13.6, this trades at P/E of 8.24 (13.6/1.65)
PBV = 1.20
When PBV is considered both are trading at an attractive price now because below 2X of PBV for finance companies are considered to be of worthy.
However, announcement of PLC amalgamation with SMLL and subsequent offer of 3 PLC shares for 1 SMLL share means,
74,576,979 SMLL shares should be multiplied by 3 making it 223,730,937 PLC shares.
But they said minority share holders, so accordingly 7,121,957 SMLL shares will have to be converted to PLC shares
[Total shares - parent shares - (74,576,979 - 67,455,022) = 7,121,957]
Which means new PLC shares - 7,121,957 x 3 = 21,365,871 will be added to the existing 1,635,000,160 shares.
What will happen to the Stated capital and share price in the market?
Literary speaking, Stated Capital of Rs. 12,958,000,800/- of PLC (as at 31st December 2012) represents 1,635,000,160 shares.
Similarly Stated Capital of Rs. 1,580,861,658/- of SMLL represents 74,576,979 shares.
So new stated capital should be;
(12,958,000,800 + 1,580,861,658) - 14,538,862,458.
But the above represents how many shares now?
Is it 1,635,000,160 + 21,365,871 = 1,656,366,031 (1.65 Bil)????
Then what will happen to the parent shares?
Is this mean somewhere around 12-12.70 is the new market share price of PLC??????????
Hope someone can clarify where the share price should stand after the amalgamation....
