J.P.Morgan Investment Banking Pitch Book
KEY TRANSACTION CONSIDERATIONS
JPMorgan believes a strategic buyer can recognize revenue synergies
of approximately $20mm, or $6.50 of equity value per share
Revenue Enhancement
Kerzner currently avoids high-roller business
An opportunity exists to target premium player
business and drive gaming revenue profitability
Integration of Atlantis customer base into an existing
loyalty program could also generate incremental
revenue
JPMorgan
Value estimate
($ millions except per share amounts)
KZL estimated 2006 casino revenue
Up-lift
20%
$30.0
50%
$15.0
$204.0
$5.27
Incremental revenue
Margin on incremental revenue
Incremental EBITDA
Discounted value¹
Implied value / share²
1 Assumes a 9.5 % discount rate and 2% perpetuity growth
2 Based on 38.7mm diluted shares outstanding
$150
25%
30%
$37.5
$45.0
50%
50%
$18.8
$22.5
$255.0
$306.0
$6.59 $7.90
KERZNER INTERNATIONAL 10View entire presentation