By Phil Boeyen, ShareChat Business News Editor
|
Monday 20th August 2001 |
Text too small? |
The report by Deloitte Touche Tohmatsu has assessed the company's fair market value at around a quarter of a cent per share.
"This is considerably lower than the current share price of 1.9 cents per share," the report states.
The appraisal report has been put together following Aquaria's plans to acquire Thames-based organics company, Organics Interceptor Products (OIP).
As part payment for the business Aquaria plans to issue the company's owners with 1,950 million shares.
Deloitte Touche Tohmatsu says in its opinion the proposed allotment in part consideration of the acquisition of OIP has merits to existing AQL shareholders.
"In our opinion, the terms and conditions of the proposed purchase of OIP and the issue of AQL shares are fair to the non associated shareholders.
"Deloitte Corporate Finance assesses the fair market value of OIP to be in the range of $4 million to $6.2 million. The midpoint of this range is $5.1 million.
"Deloitte Corporate Finance assess the value of the consideration offered to OIP's owners to be in the vicinity of $5.0 million. This is lower than the midpoint of our valuation of OIP. The issue price of shares proposed to be allotted to OIP Allotees is 0.25 cents per share."
Aquaria plans to hold a special meeting to consider the acquisition at the end of the month.
If the deal goes ahead the company will ditch the tarnished Aquaria name in favour of Certified Organics Limited. The new business will produce a range of organic products for agriculture, home and industry.
No comments yet
