On Playtech important to consider who owns the majority of Caliente (some time on wikipedia will throw up some interesting background) and also look at the performance of the B2B business ex the special fee they have agreed to give up
Yes, this is a good point. Although a 30% stake in Caliente Interactive could be worth a lot. It's unclear to me how PTEC will monetize this stake. A minority stake into a company run by a family with ties to the Mexican cartel doesn't sound like the easiest thing to get rid of...
Pro-Forma for the transaction I get around 600m EUR EV. Not entirely sure what EBITDA will look like with the new Caliente contract, but management guided towards 30-40m EUR less in 2025 vs 2024. If you take Pro-Forma EBITDA to be 150m EUR, a 40m reduction on 2023 EBITDA + a little bit of growth you land with a 4x multiple. Definitely cheap, but not that much cheaper than where PTEC traded pre deal.
However if the Caliente stake can be monetized at anything close to the rumored SPAC price or on any reasonable multiple of sales (did 700m EUR in 2023), the RemainCo is a steal. Keen to hear thoughts from anyone else who has done work here.
UPDATE: Journey Energy Inc. announced that it has received approval from the Toronto Stock Exchange (the “TSX“) to undertake a proposed normal course issuer bid (the “Bid“) to purchase up to 4,666,445 common shares, representing approximately 10% of the public float of Journey’s outstanding common shares as of August 14, 2024.
On ADF Group , they finished share buyback because it was approved to self buy the owned shares by the founders (Jean, Pierre and Marise Paschini, members of the Board of Directors and corporation management team Groupe ADF Inc) !!! at the highest stcok price of 17 CAD, after heating up the stock at June!!! Now it is at 11CAD , That´s not fair !! as always , dangerous canadian managment.... Not so preferred to me... as you mention on your report.....
On Playtech important to consider who owns the majority of Caliente (some time on wikipedia will throw up some interesting background) and also look at the performance of the B2B business ex the special fee they have agreed to give up
Yes, this is a good point. Although a 30% stake in Caliente Interactive could be worth a lot. It's unclear to me how PTEC will monetize this stake. A minority stake into a company run by a family with ties to the Mexican cartel doesn't sound like the easiest thing to get rid of...
Pro-Forma for the transaction I get around 600m EUR EV. Not entirely sure what EBITDA will look like with the new Caliente contract, but management guided towards 30-40m EUR less in 2025 vs 2024. If you take Pro-Forma EBITDA to be 150m EUR, a 40m reduction on 2023 EBITDA + a little bit of growth you land with a 4x multiple. Definitely cheap, but not that much cheaper than where PTEC traded pre deal.
However if the Caliente stake can be monetized at anything close to the rumored SPAC price or on any reasonable multiple of sales (did 700m EUR in 2023), the RemainCo is a steal. Keen to hear thoughts from anyone else who has done work here.
EXCELLENT REPORT.
UPDATE: Journey Energy Inc. announced that it has received approval from the Toronto Stock Exchange (the “TSX“) to undertake a proposed normal course issuer bid (the “Bid“) to purchase up to 4,666,445 common shares, representing approximately 10% of the public float of Journey’s outstanding common shares as of August 14, 2024.
On ADF Group , they finished share buyback because it was approved to self buy the owned shares by the founders (Jean, Pierre and Marise Paschini, members of the Board of Directors and corporation management team Groupe ADF Inc) !!! at the highest stcok price of 17 CAD, after heating up the stock at June!!! Now it is at 11CAD , That´s not fair !! as always , dangerous canadian managment.... Not so preferred to me... as you mention on your report.....