Yrk is to proceed with a 211.3/100 rights offer at 1500 cps to partly fund its acquisition of GFP and SA Plywood for a combined R1.7bn. Buying at the current 2800 cps and following one's rights gives an ave. price of just over 1900 cps. This equates to a forward PE of 4.8x on the pro-forma headline EPS. This does not take into account possible operational efficiencies that might be unlocked from self -sufficiency in log supply. Capital strucuture will also have a fair amount of debt to gear earnings growth over the medium term. Yrk is deriving major benefit from the current construction boom and might well rereate to a 10x PE. This is one of the major investment opportunities on the JSE at the moment for a slightly patient investor.