In any takeover by the majority shareholder, exchange rules require an independent fair value to be done.

 

Being a merchant bank, GMN would have to be valued on its net asset value.

As there is no goodwill, this means hard assets as presented in the balance sheet.

 

That is, at least $1.70 + per share would be determined as the NAV.

 

Unlike HF which has an operating business that can be alternately valued by cash flow and net earnings models, GMN would be valued directly on its hard assets.