Volante target statement keeps on song

Volante has again advised shareholders to reject Commander’s takeover bid with the release of its target statement to the ASX.

To no-ones’ surprise the 122-page tome argues that Commander’s bid of $1.01 a share fails to realise Volante’s improving outlook at position in the managed IT services sector.

However, the company’s board may surprise some with its own estimation of the value of its shares. Citing an evaluation report from Lonergan Edwards & Associates, the board argues Commander’s bid undervalues Volante’s shares by a whopping 26 to 43 percent.

The report, which also concludes Commander’s bid as neither fair nor reasonable, places the shares between $1.27 and $1.44 apiece.

The highest Volante’s shares have closed at since the Commander offer was $1.14 on 20 January.

Volante chairman, Robin Crawford, said in the ASX statement that the bid represented an unusually low premium and was well below IT sector historic transaction and trading multiples.

“Services revenue is forecast to grow by close to 50 percent $103.9 million in FY 2005 to $155.7 million in FY 2007,” he said.

“Group EBITDA is expected to grow at a compound annual growth rate of 12.0 percent per annum with NPAT growing 15.6 percent between FY2005 and FY2007.

Managing director and CEO, Ian Penman, cited the company’s selection as the preferred tenderer to the SA government’s for server support services as evidence of Volante’s growing services credentials.