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DANKA BUS ADR Message Board

  • duckduffer duckduffer Sep 16, 2005 5:13 PM Flag

    More Consolidation

    Oce agreed to aquire Imagistics today. This may have something to do with the move up. Consolidation by the manufacturers, protecting/securing distribution channels. Danky is a billion dollar distribution channel that could be worth $6-10 share in a buyout (based on sg&a cost savings turned into bottom line profits). Maybe more with a little goodwill.

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    • At this point $6 to $10 per share would sound pretty good to most of us, but for Danka to be acquired at the same price as Imagistics based on annual revenue streams it would equate to a whopping $16.69 for each Danka share.

      This $16.69 does not include any value for the tremendous tax benefit that an acquiring company would also recieve from acquiring Danka's stunning $3.9B Tax Loss Carryforward.

      Imagistic Price Doubled (Danka Double Revenue)
      $754M X 2 = $1.508B

      <0.140B> Less Danka's Net Debt
      <0.300B> Less Danka's Preferred Shares


      $1.068B/64M Shares = $16.69 per share

    • I agree Duckduffer, the announcement of the OCE acquisition of Imagistics will probably continue to have a positive effect on Danka's share price as it draws sharp attention to what a strong takeover canidate Danka is.

      Oce ageed to acquire Imagistics for $754M including Imagistics net debt of $140M. Imagistics $600M annual revenue stream is only about 50% of Danka's $1.2B annual revenue stream. With only 64M shares o/s Danka's current Market Cap based on todays close of $2.60 is only $166.4M. When Danka's Total Net Debt of $140M is added to the $166.4M Market Cap it equates to a current Total Enterprise Value for Danka of only $306.4M.

      Oce is buying Imagistics wich only generates 50% as much revenue as Danka for $754M and Danka's current Total Enterprise Value Based on a $2.60 stock price is only $306.4M.

      Even when you add $300M for Danka's preferred shares the total for Danka is only $606.4M or only about 80% of the $754M that OCE is paying for Imagistics $600M annual revenue stream wich is only half of Danka's $1.2B revenue stream.

      Imagistics Press Release About OCE'S Acquisition:

    • Thanks for the post Duckduffer. Do you have a one year price target on Danka if it is not acquired by then ?