Investor Presentaiton
October 12, 2021
BUYOUT OFFER AND IMPLIED VALUATION
Buyout proposal valued Proteak at P$7.1 per share (42% upside) if we assumed nil value
for the MDF unit.
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April 2019: Conti Street Partners-a Texas-based family office that has had a seat on the
BoD since 2007-proposed Proteak to form a JV.
Proteak would contribute 1,800 ha. of teak plantations at a valuation range of US$47-52
million, while Conti would contribute cash for new fields.
The offer was rejected; however, based on Proteak's 2021 majority net debt and if we
assumed the MDF unit did not exist, it would have implied an EV/ha. of P$6.5-7.6 per
share.
Implied Proteak Valuation
EV (USD Million)
Hectares (ha.)
EV/ha. (US$)
Total ha.*
Implied EV
Maj. Net Debt 2Q21
Equity Value
Price per Share (P$)
Range of Conti's Offer
Low
High
47
52
1,800
1,800
26,111
28,889
7,717
7,717
201
223
80
80
121
143
$6.5
$7.6
*7,137 ha. wholly-owned + 50% stake in Tacotalpa JV
Source: GBM Research based on company filings
GBM
TEAK: AFTER ALL, MONEY DOES GROW ON TREES. | 27View entire presentation