1. Most Discussed
  2. Gainers & Losers

MAPCA - valued at 7c !

  1. jon1

    400 posts.
    Here is an article from todays AFR where Deutsche value the partly paids at 7c.

    Macquarie flies low

    Relations between Macquarie Bank and Deutsche Bank have sunk to new depths, judging by the latest Macquarie Airports research from Deutsche analyst Clinton Wood, in which he ascribes a 7¢ value (you read that correctly) on its partly paid units.

    The report is proving contentious not just for Macquarie but for numerous institutional investors, many dismissing it as sour grapes from Deutsche given its consortium lost in the bidding for Sydney airport. (Of course, as is well known, the research arm of an investment bank is independent of corporate finance.)

    Essentially Wood reckons that an 11 times enterprise value to EBITDA multiple is appropriate and this implies a fully paid share price of $1.07. This is based, he says, on the quality of the MAp portfolio, a 65 per cent gearing level compared with a listed sector average of about 30 per cent, and the management fee structure.

    His arguments are the point of fierce debate.

    For a start his use of EV/EBITDA contradicts Deutsche's DCF methodology for valuing Auckland International Airport. Another criticism, as articulated by a fund manager, is that he allows for no diversification value from MAp having a portfolio of assets with different regulatory/geographic profiles when he compares it to single asset Auckland or BAA (Heathrow).

    With the $192 million retail component of the latest MAp raising for Aeroporti di Roma clouded by negative sentiment toward Macquarie and impacted by the global equity meltdown, it is fortunate that $180 million of that figure has been sub-underwritten.

    Already on-market has seen the institutional proportion of the share register rise from 70 per cent at the time of the float to in the vicinity of 80 per cent to 85 per cent.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top