- Ardagh is selling its beverage can division to a SPAC for cash and stock.
- This will reduce the enterprise value of the Ardagh Group to just $2.4B, which is less than 4X the EBITDA of the remaining assets.
- I expect the Spinco to do well, and this could further reduce the pro forma enterprise value of the Ardagh Group, and further boost the fair value of Ardagh.
- The current fair value appears to be around $35/share, and every dollar the AMBP share price increases, the value of ARD increases by $2/share.
For further details see:
Ardagh Group Offers 50% Upside On The Completion Of The Beverage Can Sale