SEC Filings
8-K | |
HRG GROUP, INC. filed this Form 8-K on 08/09/2016 | |
Entire Document |
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Private & Confidential
3Q 2016 Sum of the Parts Valuation (Dilutive) without AOCI
10
As of the close of the
third quarter, the
estimated net value of
our assets and
liabilities was $17.09
per share of diluted
common stock, an
increase of 7.0% from
our March 31st value,
and an increase of
21.5% from the start of
Fiscal 2016.
SUM OF THE PARTS VALUATION – ESTIMATED VALUE VS. COMMON STOCK PRICE ($)
$16.21
$5.83
-$0.67
$3.91
-$0.28
$1.04 -$8.95
$17.09
$13.73
Difference of $3.36
or a 19.7% Discount
Spectrum
Brands1
Insurance
Segment2
Total
Estimated
Value8
June 30th
Common Stock
Price9
HGI
Funding
LLC4
HGI Asset
Mgmt
Holdings
LLC5
Cash6 Debt &
Other
Liabilities7
HGI
Energy
Holdings
LLC3
1. The valuation of HRG’s interest in Spectrum Brands (NYSE: SPB) is based on the volume weighted average closing price (“VWAP”) of SPB shares for the 20 day trading period of
$117.22 through June 30, 2016 multiplied by the 27,756,905 SPB shares owned by HRG.
2. The valuation of HRG’s interest in the insurance segment reflects the sum of the per-share-value of its interests in (i) Fidelity & Guaranty Life (NYSE: FGL) based on the VWAP of
FGL shares for the 20-day trading period of $22.85 through June 30, 2016 multiplied by the 47,000,000 shares owned by HRG (or $5.35 per share); and (ii) Front Street Re
(Holdings) Ltd., representing a net book value of $97.1 million, or $0.48 per share.
3. The valuation of HGI Energy Holdings LLC reflects its net book of value as of June 30, 2016.
4. The valuation of HGI Funding LLC reflects its net book value as of June 30, 2016 (which includes 6,582,847 SPB shares and the market value of other securities owned by HGI
Funding).
5. The valuation of HGI Asset Management Holdings LLC, reflects its net book of value as of June 30, 2016.
6. Total cash consists of cash at HRG as of June 30, 2016.
7. Debt and other liabilities includes the face value of all liabilities at HRG as of June 30, 2016, excluding deferred tax liabilities.
8. Per share amount for each of the above mentioned assets and liabilities is calculated by dividing the total valuation of such asset or liability by the 200,690,568 shares of HRG
common stock (NYSE: HRG) outstanding as of June 30, 2016, which amount does gives effect to dilution for the vesting of all outstanding restricted shares (2,066,973).
9. The closing price for HRG’s shares of common stock June 30, 2016.
Note: Book value as reflected above is not necessarily indicative of market value
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