Memstar

Memstar: Based on United Envirotech's (UENV) current price of $1.49, Memstar's fair value would be $0.140, or 3.7% above its current price of $0.135. To recap, Memstar shareholders had approved in its recent EGM, to sell Memstar’s entire core operating assets to UENV in a deal valued at $293.4m. Post transaction, Memstar would effectively be left with $73.4m cash (2.8¢ per share) and 200.1m UENV shares (25% stake) as its key assets. The deal has a long stop date on 28 Apr 2014. This means that Memstar’s fair value can be linked directly to UENV’s share price, with the calculations as follows: = [$73.4m cash + (200.1m UENV shares x $1.49 current share price)] / 2,661.41m Memstar shares