Too late to invest now?

[#1]

Accordingly to the fin24 article - the share should worth more - R 160, but is that too late to invest in MTN shares now considering that it has risen by 9% and with 2 Billion Rand in total value traded today.

[SimonPB]

f24 not completely correct .. bharti will buy 36% of your MTN holding at 8500c cash and half a JSE listed bharti share .. at fridays close this equaled around 16100c .. but that is only for your 36%, much like the SBK/ICBC deal of last year that doesn't equal a value of 16100c for each MTN share and MTN is unlikely to trade at that level on just this deal ..

[Hibiscus]

Simon how can we determine the value of the remaining 64%. Tried yesterday but my calc dont make sense

[#4]

Thanks! It still doesn't make any sense - please let me know if I have missed something. Should the share price be dropped therafter? Here is my calculations: Say, if I purchase 100 MTN shares now at 12500 each - total value = R 12,500.00 and then they buy 36% of my MTN share holding worth 8500 each and then I sell the remainder at the price after the their purchase for 8000 (64% of 12500). The total earning will be: 36 MTN shares @ 8500 each = R 3,060.00 64 MTN shares @ 8000 each = R 5,210.00 Loss = R 4,320.00

[#5]

Are you not taking in the value of each Bharthi share acquired??? 1 Bharthi share for every MTN Share

[#6]

Do you mean I can add the value of 36 shares (based on my calculations) to the total?

[#7]

Not sure - though you going to get some Bharthi shares for the diff between the R85 and the actual cost (not 100% sure if it's one for one) - if it is 1/2 a Bharthi share for 1 MTN - I still think it's a good deal... I'll only increase my MTN shares once the deal is finalised.

[HI_ITS_ME]

thats true

[Jim_Bean]

you mean ... if the deal is finalised Remember Phathuma sold like 9,000,000 shares for R153 odd, the day before announcing that the deal was off the last time! Of course the JSE did not see anything wrong with that :)

[Surf_Rat]

If you value a MTN share at 125 rands a share which is cheap then based on my maths which is better than my grammer the MTN share should trade at 137 rands if the deal goes through fair value if you valued MTN at 140 rands per share then the fair value would be 147 rands so the premium depends on how you value the share using PE values if the deal goes through 140 rands is my number using 130 as a fair price for the current MTN share 10 rand premium just short of 8%