OSB - how would you value the shares in ACL? How many shares were issued to each shareholder?
There are 3,516,112 £1 shares issued fp split equally between the Council and the Charity (in holding companies owned by each party to be exact)
In terms of valueing then there are many ways of doing that and because of the complex nature of the site I would expect there is no one set method applicable to each facet. These are only examples a valuer could use other methods
- leases are usually valued on rent roll x number of years (eg the casino)
- the shares in IEC are going to be perhaps considered on Turnover, future projections, net profit etc
- the lease that ACL own would be valued on the income or potential for income, if the lease covers the development land as well then it could depend on planning permissions, value of sales of similar etc (but that land may rest with the CCC)
- You then have valuations of fixtures & fittings which are resale value 2nd hand
- would you say there was any goodwill in the business, you could try but that is the premium someone might pay above tangible asset value
- there might be rights to income or other profits under the lease that might have a value equally there might be costs that depress value
- you would need to factor in any potential or existing liabilities too
Add up all the various parts you get an overall value. If you then buy 50% then it is reasonable to assume paying 50% of value (but not necessarily) if you buy 51% or more then because that gets you simple control that is more valuable
That is just a few thoughts ....... to be honest I am glad I do not have to value it!
As you say the true value is what a willing buyer is prepared to pay for it ....... the price might be higher if there are 2 or more buyers of course