RIC + IPLD - what's it worth?

RIC's acquisition of Incitec Pivot's Australian fertiliser distribution business is a massive development for RIC - this doubles the business.

What is IPLD worth?

The only data is the limited information on a pro forma basis in the capital raise presentation. QH & team are a little busy with the merger so we can't expect worthwhile commentary or consolidated accounts for a while.

The PF balance sheet shows RIC acquiring IPLD net assets of $627m for $300m + $19m costs.

IPLD stand-alone PF to 30 Sept 2024 produced EBITDA of $86m and EBIT of $61m. I loathe EBITDA as it hides many sins. NPAT is the final measure of business success. Still, this is a powerful insight, with IPFD depreciation of $25m and large, unknown interest costs, mostly in working capital on seasonal fertiliser stocks.

Shares traded is very low - both sellers and buyers struggle to properly value the new RIC. It has advanced to 2.95 and I see further rises ahead when good data arrives.

Considered opinions welcomed.

Ash