I think the deal is solid in the current market. I was saying to a friend last week that I thought around $11 was about it for now for ZFX in the absence of either a massive increase in zinc price or a takeover. I'm no guru obviously but really how much more could be justified as a multiple with earnings slashed so much?
I notice that article says OXR are buying ZFX for 5.6 times EBITDA - surely this must be including the one off realisation from smelter sale? ZFX is nothing like 5.6 once that is taken out.
Will be interesting to watch it unfold though - to me the merger makes good sense and looks a win-win but maybe the big holders won't agree.
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- has oxr dealt itself a too good a deal....
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