Amyris (AMRS)
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Elster Group SE (ELT), $275mm IPO
Market cap of $1.7bb at price mid-point of $17
Scheduled for Thursday, Sept 30 |
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SUMMARY |
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. Doesn’t look good. A private equity bailout from Germany
. Stagnant business, 45 times annualized six months earnings.
. -2.5 price to (negative) tangible book value, which means the private equity people have already flushed as much money as possible out of the company
. And the private equity seller wants to bail asap |
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PRIVATE EQUITY SHAREHOLDER |
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. Post IPO Rembrandt will hold a 77.6% equity interest in ELT and the Management KG, which is affiliated with Rembrandt, will hold a 6.2% equity interest in ELT company.
. Rembrandt has advised ELT that it does not anticipate owning a majority of ELT shares over the long term. |
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BUSINESS |
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One of the world’s largest providers of gas, electricity and water meters and related communications, networking and software solutions |
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USE OF IPO PROCEEDS |
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$152mm, over allotment if any to selling shareholders |
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• €113.1 million ($143.9 million) to pay outstanding debt under the Senior Facilities Agreement; |
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• €3.9 million ($5.0 million) in principal amount plus accrued interest in an amount expected to be approximately $1.3 million to repay a loan made to us by the Management KG, which matures on December 31, 2025 and accrues interest at an annual rate of 6.8%; and |
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• Remaining $1.9 million of the net proceeds in liquid assets over the medium term to support our liquidity position. |
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Elster Group SE |
ELT, C+, 6 |
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Post ADS equivalents: 100mm |
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Gas/water/elec meters |
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June 09 |
June 10 |
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Essen, Germany |
2007 |
2008 |
2009 |
6 mos |
6 mos |
IPO Mkt |
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Revenues ($mm) |
$1,736 |
$1,905 |
$1,695 |
$837 |
$831 |
Cap (mm) |
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Gross profit % |
30% |
31% |
30% |
30% |
30% |
$1,700 |
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Net income ($mm) |
$77 |
-$87 |
$52 |
$42 |
$19 |
@$17 |
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Net income % |
4% |
-5% |
3% |
5% |
2% |
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VALUATION RATIOS |
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annualizing June 6 mos |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
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for sales & earnings |
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
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Elster Group SE (ELT) |
$1,700 |
1.0 |
45 |
2.9 |
-2.5 |
16% |
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SCORECARD |
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Mgt |
Market |
Market Do- |
Proprie- |
Total |
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Growth |
mination |
tary |
rating |
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20 is perfect |
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2 |
1 |
2 |
1 |
6 |
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