https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02882384-3A655949

Today CLG received a NBO of $0.27 from Adamantem Capital to acquire 100% stake in the business, a premium of nearly 50% of the share price.

I've had strong conviction in CLG for some time and not sure how I feel about this outcome. Based on my estimate of forward earnings, the proposed purchase price represents a PE of around 8-10x (if my expectation of $15-18m earnings is true) or 12.5x based on last years earnings (which included a significant amount of amortisation expenses)

I am eagerly awaiting an update at the upcoming AGM to hear about their trading update, but was expecting with all the expansion into more european countries and potential refinancing at a lower rate (than 11.5%) their future earnings potential would be significantly higher.

If CLG are open to a takeover, I am hoping that there would be more competition as I think they should be somewhere in the 35-40c range if you look at future earnings.

I am very happy that I will get some capital gain if this eventuates, but am I being too greedy wanting them to grow the business more before selling out? Would be keen to hear from other strawpeople on what they think