deal of the century

[#1]

? MTA is buying the Turkish business (not going to try to pronounce it here) for roughy R2.3bn. Now Mutlu ... owns 75% of the battery maker in Turkey - which has a reported annual profit of TL420m - roughly R2bn - so MTA's portion is roughly R1,5bn. Metair is basically getting this company for a PE of 1.5. Now, the only downside here, is that Mutlu generates a significant portion of sales in the Russian aftermarket (sanctions a concern here). So, a company bought cheap - capable of large scale start stop battery production (the new norm in EU vehicles)m coupled with an existing holding in Rhombat (along with its distribution infrastructure) and relationships in the automotive manufacturers circle, means the price is a steal. Especially when you consider that MTA's current net profit is only R340m. What exactly am I missing here, since this deal seems too good to be true?

[#2]

sorry - that is actually a PE of 10. Mutlu made TL420m in sales - earnings was actually TL39m - R195m. Still a good deal though - MTA will almost double its EPS without even introducing efficiencies, etc

[SimonPB]

it a great company, locally things are tough with imported batteries landing cheaper .. but the rombat and Turkish assets are great, the rombat factory was build with mostly EU gov money as they stop start tech