Subject: vitro
louise ,
we are selling vitro for an enterprise value ( ev ) of $ 208 . 4 mm ( $ 136 mm in debt , $ 53 mm in book equity , $ 15 . 5 mm premium from tractebel for 80 % , and $ 3 . 9 mm implied premium for our 20 % stake ) .
ebitda for 2003 ( first full year of operation ) is $ 24 mm for an ev / ebitda multiple of 8 . 7 x .
using the average ebitda for 14 years of $ 31 mm you end up an ev / ebitda multiple of 6 . 7 x .
in my mind , both are great multiples for a project such as vitro . the nice fact is that we get $ 15 . 5 mm from tractebel with $ 10 mm invested for our 20 % , or a net negative $ 5 million investment in the project .
let me know if you need anything else .
thanks ,
don