An independent valuation prepared in June by KPMG in Australia for Dapei Zahav (Yellow Pages) parent company Babcock and Brown Capital (ASX: BNB) gave Dapei Zahav a value of only A$ 44-57 million ($38-49 million). The figures were reported by investment fund Babcock and Brown Capital in its report today to the Australian Stock Exchange.
Babcock and Brown Capital trades on the Australian Stock Exchange at a value of $438 million, and is a fund of investment group Babcock and Brown.
Babcock and Brown Capital bought Dapei Zahav from Markstone Capital Partners Group LLC in July 2007 for A$ 150 million ($123 million), which was considered high even then.
After KPMG gave its valuation, Babcock and Brown Capital ordered another valuation, from Deloitte economic consulting services. Deloitte found the value to be around A$ 110 million ($95 million), and the enterprise value (debt and equity) is A$297.
Dapei Zahav was Babcock and Brown Capital's first and last acquisition in Israel. B has been hit hard by the global credit crisis and its shares have fallen 28% in the past year.
With the Australian offices no longer able to fund Israeli transactions that the Israeli branch recommended, it was decided in recent days to end its Israel activities.
It is expected that Dapei Zahav will be sold. In that situation, the valuations received will serve as a ceiling in negotiations, assuming a buyer can be found in the current market situation.
Babcock's report to the Australian Stock Exchange showed that consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for January through June 2008 were NIS 38.8 million. EBITDA from online activities reached NIS 4.4 million in the first half, compared with a loss in the corresponding period of 2007. There was 68% growth in local search & information business EBITDA from NIS 5.6 million to NIS 9.4 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 28, 2008
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