Record pays around 11.5 times for Allco
The merger of the unlisted Allco Finance Group with the listed Record Investments will be effected via the purchase of most of Allco Finance by Record. Allco and Record have now published the valuation to be used in the merger. Record (which will remain listed) will change its name to Allco Finance Group. The independent expert’s report from Grant Samuel used a notional range for Record shares of between $7.50 and $8.50 per Record share in working out a valuation of Allco, even though Record’s shares traded at $10.70 earlier this week. On that basis, Grant Samuel estimated that Record was in effect paying between $651 million and $738 million for Allco, which the firm said represented a multiple of between 10.8 times and 12.3 times Allco’s forecast net profit after tax for the year to June 2006.