TFIL - Major Acquisition Target?

extremedeal · 1 TFIL - Major Acquisition Target? Mon Jan 27, 2014 10:26 am

extremedeal

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With the said financial sector consolidation scenario, best financial companies gets the biggest attention. TFIL has the lowest Leverage, Good Return on Equity and a clean balance sheet. 3 out of their 5 branches are in Northern Region which makes it better for whoever acquires them.

Currently Central Finance and PLC finance are on the hunt for TFIL.

Slstock · 2 Re: TFIL - Major Acquisition Target? Mon Jan 27, 2014 11:08 am

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Is this from a reliable source?

extremedeal wrote:

Currently Central Finance and PLC finance are on the hunt for TFIL.

extremedeal · 3 Re: TFIL - Major Acquisition Target? Mon Jan 27, 2014 1:19 pm

extremedeal

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slstock wrote:Is this from a reliable source?

extremedeal wrote:

Currently Central Finance and PLC finance are on the hunt for TFIL.

Yes,100% Reliable.

Slstock · 4 Re: TFIL - Major Acquisition Target? Mon Jan 27, 2014 1:24 pm

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Well TFIL certainly had good fundamentals so who ever acquires it , it will not be a burden to them.

I hinted this share when it was in the Rs 14 and gain in The Rs 15/16

http://forum.srilankaequity.com/t32308p25-cse-in-2014-and-fundamental-shares-that-have-underperformed#191439

extremedeal · 5 Re: TFIL - Major Acquisition Target? Mon Jan 27, 2014 1:27 pm

extremedeal

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slstock wrote:Well TFIL certainly had good fundamentals so who ever acquires it , it will not be a burden to them.

I hinted this share when it was in the Rs 14 and gain in The Rs 15/16

http://forum.srilankaequity.com/t32308p25-cse-in-2014-and-fundamental-shares-that-have-underperformed#191439

Yes, this will not give any unwanted burden to the acquiring company. That is why good companies like CFIN and PLC are interested.

seek · 6 Re: TFIL - Major Acquisition Target? Mon Jan 27, 2014 7:47 pm

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don't you think central finance and PLC are too big for TFIL?

extremedeal · 7 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 1:16 pm

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seek wrote:don't you think central finance and PLC are too big for TFIL?

It is the other way around. TFIL is the acquisition target. They have the lowest leverage among financial companies and that makes them a a huge target. Hope some of you were able to pick them up at 16 when this thread went alive.

Exit at around 24-30...

Slstock · 8 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 1:31 pm

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By no means this is a price target to follow blindly.
So no blind following or blames games if it doesn't get there

This is just a educational calculation :

After this quarter . TFIL NAV will be about 13.

If at 2 times Book value Price will be : Rs 26

There are roughly 56.8 mil shares,

So at Rs 26 ( just for argument)
TFIL totally is worth 26*56.8 = 1.48 billion

Interestingly their Assets are at 1.405 Bil by Sept ( liabilities about 0.7 bil)

Estimated earning will be well over 150 mil this year.

I see CFL running ahead of TFIL right now with lesser book value.

If they get acquired how much will the acquirer pay for a company like this. . Good question right?

Disclosure : I hold a limited quantity of this share (sadly) . Already over 60% profit so anything above Rs 20 will be bonus for me.

Hawk Eye · 9 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 1:41 pm

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slstock wrote:By no means this is a price target to follow blindly.
So no blind following or blames games if it doesn't get there

This is just a educational calculation :

After this quarter . TFIL NAV will be about 13.

If at 2 times Book value Price will be : Rs 26

There are roughly 56.8 mil shares,

So at Rs 26 ( just for argument)
TFIL totally is worth 26*56.8 = 1.48 billion

Interestingly their Assets are at 1.405 Bil by Sept ( liabilities about 0.7 bil)

Estimated earning will be well over 150 mil this year.

I see CFL running ahead of TFIL right now with lesser book value.

If they get acquired how much will the acquirer pay for a company like this. . Good question right?

Disclosure : I hold a limited quantity of this share (sadly) . Already over 60% profit so anything above Rs 20 will be bonus for me.

Is it going to be an acquisition or merger ???

Slstock · 10 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 1:43 pm

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Yes , I should restate. I don;t think Major holders will sell looking at the history.
So Merger is a better bet.

Hawk Eye wrote:

slstock wrote:By no means this is a price target to follow blindly.
So no blind following or blames games if it doesn't get there

This is just a educational calculation :

After this quarter . TFIL NAV will be about 13.

If at 2 times Book value Price will be : Rs 26

There are roughly 56.8 mil shares,

So at Rs 26 ( just for argument)
TFIL totally is worth 26*56.8 = 1.48 billion

Interestingly their Assets are at 1.405 Bil by Sept ( liabilities about 0.7 bil)

Estimated earning will be well over 150 mil this year.

I see CFL running ahead of TFIL right now with lesser book value.

If they get acquired how much will the acquirer pay for a company like this. . Good question right?

Disclosure : I hold a limited quantity of this share (sadly) . Already over 60% profit so anything above Rs 20 will be bonus for me.

Is it going to be an acquisition or merger ???

Hawk Eye · 11 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 1:59 pm

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I am still confused. Frankly speaking.with all these appreciation in prices.

Someone Pls clear my doubts
- What is the consideration expected to offer. Share SWAP/Cash
- Who has more power to negotiate,
- Are the big banks running behind the finance companies?
- Mergers will be done on current market price?

Leon · 12 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 2:09 pm

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slstock wrote:By no means this is a price target to follow blindly.
So no blind following or blames games if it doesn't get there

This is just a educational calculation :

After this quarter . TFIL NAV will be about 13.

If at 2 times Book value Price will be : Rs 26

There are roughly 56.8 mil shares,

So at Rs 26 ( just for argument)
TFIL totally is worth 26*56.8 = 1.48 billion

Interestingly their Assets are at 1.405 Bil by Sept ( liabilities about 0.7 bil)

Estimated earning will be well over 150 mil this year.

I see CFL running ahead of TFIL right now with lesser book value.

If they get acquired how much will the acquirer pay for a company like this. . Good question right?

Disclosure : I hold a limited quantity of this share (sadly) . Already over 60% profit so anything above Rs 20 will be bonus for me.

@ Slstock, With this consolidation matter, smaller & isolated finance companies will be acquired by bigger companies prices of those will appreciate. In that scenario what will happen to the companies like LOFC.(Finance companies come under group of companies) They are supposed to merge with their mother company. Will their prices also appreciate???

Redbulls · 13 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 2:11 pm

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Hawk Eye wrote:I am still confused. Frankly speaking.with all these appreciation in prices.

Someone Pls clear my doubts
- What is the consideration expected to offer. Share SWAP/Cash
- Who has more power to negotiate,
- Are the big banks running behind the finance companies?
- Mergers will be done on current market price?

Mate the price appreciation and what all these happenning well planned and engineered. Time will reveal. Upto that just play the game with the tide.

Without Confusion (buyer or seller), stock market or the modern era markets won't survive.

Enjoy the game and comments like "I told you no?" for the time being.

Hawk Eye · 14 Re: TFIL - Major Acquisition Target? Fri Jan 31, 2014 2:18 pm

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Redbulls wrote:

Hawk Eye wrote:I am still confused. Frankly speaking.with all these appreciation in prices.

Someone Pls clear my doubts
- What is the consideration expected to offer. Share SWAP/Cash
- Who has more power to negotiate,
- Are the big banks running behind the finance companies?
- Mergers will be done on current market price?

Mate the price appreciation and what all these happenning well planned and engineered. Time will reveal. Upto that just play the game with the tide.

Without Confusion (buyer or seller), stock market or the modern era markets won't survive.

Enjoy the game and comments like "I told you no?" for the time being.

I sensed it. All the best. i kept out of this anyway