THE NEW PNC TELECOM

martincoops

Why didn't you just say earlier that you didn't know how to calculate it and we could have dispensed with this pussyfooting around more quickly.

There are 143m shares currently in issue and the NAV in relation to them is £482k, see interims here:



The acquisition will result in the issue of 287m shares for something that has a NAV of only £125k, see:



And finally 530m shares are going to be issued, which will increase the NAV by 0.1p for each share, ie a further £530k (that's right 530m shares are going to be issued at a mere 10% of the current share price).

Hence the fully diluted NAV per share is:

( £482k + £125k + £530k ) / ( 143m + 287m + 530m )

= £1,137k / 960m shares

= 0.118pence per share.

which compares to a share price which is 10 times that figure.

Now bearing in mind that trade finance companies rarely trade at more than a small premium to NAV (since trade finance is an inherently risky business rewarded with very tight margins) then on the back of a fag packet the PNC share price would need to fall by about 90% for it to be close to fair value.

regards

JakNife