Harbinger Group Inc.
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SEC Filings

8-K
HRG GROUP, INC. filed this Form 8-K on 08/08/2014
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3Q 2014 Sum of the Parts Valuation (Dilutive) without AOCI As of June 30, 2014, the estimated net value of our assets and liabilities was $15.16 per share of diluted common stock. The closing price of HGI’s shares of common stock on June 30, 2014 was $12.70, which represents a 16% discount vs. the estimated diluted net value of HGI. SUM OF THE PARTS VALUATION – ESTIMATED VALUE VS. COMMON STOCK PRICE ($) $10.87 $5.98 $0.50 $1.82 $0.35 $1.57 -$5.93 $15.16 $12.70 Difference of $2.46 or 16% Discount Spectrum Brands1 Insurance Segment2 Total Estimated Value8 Common Stock Price9 HGI Funding LLC4 HGI Asset Mgmt Holdings LLC5 Cash6 Debt & Other Liabilities7 HGI Energy Holdings LLC3 1. The valuation of HGI’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 $80.88 through June 30, 2014 multiplied by the 27,756,905 SPB shares owned by HGI. 2. The valuation of HGI’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 $22.94 through June 30, 2014 multiplied by the 47,000,000 shares owned by HGI (or $5.21 per share); and (ii) Of the $5.98 per share book value of the Insurance segment, Front Street Re (Holdings) Ltd. represents a net book value of $158.7 million, or $0.77 per share.” 3. The valuation of HGI Energy Holdings LLC reflects its net book of value as of June 30, 2014. 4. The valuation of HGI Funding LLC reflects its net book value as of June 30, 2014 (which includes 3,186,281 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, 2014. 6. Total cash consists of cash at HGI as of June 30, 2014. 7. Debt and other liabilities includes the face value of all liabilities at HGI as of June 30, 2014. 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 206,595,655 shares of HGI common stock (NYSE: HRG) outstanding as of June 30, 2014, which amount does gives effect to dilution for the vesting of all outstanding restricted shares (5,589,203). 9. The closing price for HGI’s shares of common stock June 30, 2014. 24


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