Swot

Appendix (1)
  1- Asset Valuation
Number of shares (including convertible bonds) when the takeover took place = 103,89 m shares. (1.87bn /18 = 103.89 m shares).
Number of shares in (2009) = 13,801,000 / £0.15 = 92 million shares.
Assumption: figures stated in the Dana’s balance sheet are fair valued and it represents the market replacement value for the assets.

|Index                                       |Value                                                                                 |
|Fixed Assets                                 |1,158,737,000                                                                         |
|Current Assets                               |199,268,000                                                                           |
|Less Current liabilities                     |(116,925,000)                                                                         |
|Less Long-term liabilities                   |(583,972,000)                                                                         |
|Net Assets                                   |657,108,000                                                                           |

            Net Assets
The minimum price/share = --------------------------
              Outstanding shares

= 657,1m / 103.89 m
= £6.325/share.

                                          Net Assets
The minimum price/share = --------------------------
              Outstanding shares

= 657,1m / 92m
= £7.141/share.

  2- P/E Ratio

The P/E ratio for similar companies in the UK is as follows:-

Tata Power Company Limited PLC : 12.62
Royal Dutch Shell PLC : 10.57
Statoil ASA(ADR) PLC : 12.85

Average of P/E ratio for the three companies is calculated as follows:
      12.62 + 10.57 + 12.85
= ----------------------------
      3
= 12
The average of the previous three companies will not be modified by (50-60) % as all of them...