June 27, 2006 | Egoli | Macquairy – With world markets finding more stability in the past week, the probability and price of the NASDAQ listing for the PBL/Melco joint venture looks much more prospective. In the event that the venture was floated with the mooted equity valuation of US$6bn, this would imply that PBL’s half share would be worth US$3bn, or A$4.11bn. This is the equivalent of $6.11 per PBL share. With the PBL share price having fallen by almost 10% over the past 6 weeks, Macquarie Research Equities (MRE) believe that PBL shares are looking cheap.
MRE already include $688m ($1.02 per share) of this value in their 12 month PBL target price of $17.66, so adjusting out for this brings the increment to $5.09 and a FY07 PBL valuation of $22.75/share. Additionally, MRE also note the potential for uplift to their ninemsn valuation relative to their existing number which is an additional 42 cps accretive to their valuation.
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