Originally Posted by
percy
HBL taking over UDC would make very good sense.
HBL have stated any acquisition would have to be earnings accretive.
HBL at today's $1.21, is trading on a PE of 11.32.So would they pay a PE of 9 for UDC.?That would be just over $513mil which is a long way short of the $600 to $700 mil talked about.
HBL's market cap today is $576.5mil.A large cap raising would be needed.Yet if it added up it would be well supported .
Would ANZ take HBL scrip to get UDC off their books?
Another case of a distressed business [ANZ] selling off the crown jewels?
Nice to see the opportunities coming HBL's way.
Still no decision in the MTF Sportzone case.MTF would be a great "bolt on" acquisition for either HBL, or HBLUDC.!
All of this confirms that HBL, having excess capital while the Aussie banks need to raise capital,means the correlation between HBL and the Aussie banks is wrong,and HBL's share price has been mispriced by the market.
ps.Google 60 minutes Moranbah housing,and you can understand why Aussie banks require more capital.