EX-99.C2 3 a2167560zex-99_c2.htm EXHIBIT 99.C2

Exhibit 99.C2

 

 

The November 29, 2005 Update to the Report of Houlihan Lokey Howard & Zukin Financial Advisors, Inc. to the Special Committee of Cruzan’s Board of Directors

 

Value Indications (utilizing projections that assume V&S has control)

 

 

 

Market Multiple Approach (4)

 

Comparable Transaction Approach

 

DCF Approach - Transaction Case

 

Concluded Value (5)

 

 

 

LOW

 

HIGH

 

LOW

 

HIGH

 

LOW

 

HIGH

 

LOW

 

HIGH

 

Enterprise Value from Operations

 

$

147.071

 

$

162.461

 

$

166.310

 

$

176.710

 

$

191.798

 

$

227.012

 

$

175.206

 

$

199.011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

Cash

 

2.188

 

2.188

 

2.188

 

2.188

 

2.188

 

2.188

 

2.188

 

2.188

 

 

Proceeds from In-the-Money Stock Options

 

3.944

 

3.944

 

3.944

 

3.944

 

3.944

 

3.944

 

3.944

 

3.944

 

 

Notes Receivable

 

0.863

 

0.863

 

0.863

 

0.863

 

0.863

 

0.863

 

0.863

 

0.863

 

 

Non-Operating Loss Carryforward

 

6.359

 

6.667

 

6.359

 

6.667

 

6.359

 

6.667

 

6.359

 

6.667

 

 

Market Support Agreement

 

10.148

 

17.173

 

10.148

 

17.173

 

10.148

 

17.173

 

10.148

 

17.173

 

 

Seagram Bottling Contract

 

4.280

 

4.468

 

4.280

 

4.468

 

4.280

 

4.468

 

4.280

 

4.468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

Debt

 

(27.122

)

(27.122

)

(27.122

)

(27.122

)

(27.122

)

(27.122

)

(27.122

)

(27.122

)

 

Dividend Tax Liability (1)

 

(1.250

)

(1.250

)

(1.250

)

(1.250

)

(1.250

)

(1.250

)

(1.250

)

(1.250

)

 

Non-Operating Liability (2)

 

(0.539

)

(0.539

)

(0.539

)

(0.539

)

(0.539

)

(0.539

)

(0.539

)

(0.539

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Implied Per Share Value (3)

 

$

20.30

 

$

23.49

 

$

22.98

 

$

25.47

 

$

26.52

 

$

32.47

 

$

24.22

 

$

28.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing Share Price as of 6/3/2005:

 

$

14.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offer Price:

 

$

28.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)       Tax expected to be incurred as a result of the repatriation of funds at the one-time reduced dividend tax rate.

(2)       Represents a non-operating lease liability related to the Company’s acquisition of Monarch Wine Company.

(3)       Based on 7.188 million fully diluted shares. The closing share price on June 3, 2005 immediately prior to the announcement of the Angostura Buyout was $14.05.

(4)       Includes a 10% control premium.

(5)       Market Multiple Approach weighted 20%, Comparable Transaction Approach weighted 30%, DCF Approach weighted 50%.

 

1