Wednesday, 11 January 2017

Paramount acquisition: where are the financial numbers?

Paramount Corporation announced the acquisition of 66% of the existing shares of R.E.A.L. Education Group for RM 183 Million, which puts the valuation for the whole company at RM 277 Million.

That is quite an amount of money.

Both an attachment and a presentation are given, with some statistics and history of R.E.A.L. and how it would complement Paramounts educational arm.

But strangely enough not a single financial metric of R.E.A.L. is presented:
  • no revenue numbers
  • no profit numbers (gross or net)
  • no NAV

Paramount is a company with a pretty good long term track record, the above omissions are therefore rather peculiar.

Surely the minority investors of Paramount are entitled to receive this basic information, to be able to evaluate this deal on its merits.

May be the numbers can be found in extracts to be found at SSM, but should investors really need to do so much effort?

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