Derlan (T.DRL) Message Board

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Gold/Mining/Energy : Derlan (T.DRL)

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To: Herb Duncan who wrote (113)	12/28/1998 8:20:00 PM
From: Serge Collins	Read Replies (2) of 319

If Derlan is sold, how much can shareholders expect to receive from such a sale? Derlan recently announced the intended sale of their non-core assets (semiconductors and industrial technologies, non-core aerospace) and expect to receive about $125 million for these divisions. This will leave the company with two main operating divisions: aerospace and pumps. As well, they will be able to pay back most of their debt, leaving the balance sheet in very good shape. If the company can get $125 million for the non-core assets, that begs the question--how much value can we put on the rest of the company that is almost debt free and profitable? The remaining two divisions will have sales of about $180 to $190 million annually and be profitable. Derlan should be able to get at least as much, if not more, for the aerospace and pumps divisions, as they will receive for the non-core assets. With about 30 million shares (fully diluted) outstanding, this would put a ballpark value on Derlan of $4 to $5 per share at the low end and $6 to $7 at the upper end.

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