J.P.Morgan Investment Banking Pitch Book
KEY TRANSACTION CONSIDERATIONS
Key drivers of value for a potential buyer
Cost and revenue
synergy opportunities
Capital structure and
leveragability
View of development
pipeline
Ability to maintain
existing partnerships
Ability to retain
Kerzner's existing tax
status
JPMorgan
A strategic buyer could realize at least $25 million of cost synergies, implying a
minimum of $9.00 of equity value per share
■ JPMorgan believes a strategic buyer can improve Kerzner's casino revenue by 20-30%,
approximately $20 million of EBITDA, implying $6.50 of equity value per share
■ Cost of capital and financial leverage will drive a buyer's ability to pay
■ Kerzner's pipeline of international development opportunities will require capital
expenditure and expertise
■ A change in control could have an impact on valuation
■ The ability to keep Kerzner's Bahamian incorporation should allow a buyer to avoid
paying corporate income tax
KERZNER INTERNATIONAL
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