Western Harbour Crossing Essay
ACF: Western Harbour Crossing
January 31, 2012
In our analysis of Western Harbour Crossing (“WHC”) we have aimed to address two questions: 1. 2. How much should GW pay for the assets? What is the likelihood of the transaction going through?
To answer question 1 we have decided to value the WHC asset using a CAPV methodology. The reasons behind choosing this approach have been the following: 1. The debt is changing over time as it matures and hence the capital structure changes making a WACC unsuitable for the valuation 2. We believe that this methodology captures in a more correct way the present value of the ITS emerging from the leverage
When applying the CAPV …show more content…
CAPV valuation (continued)
HK$ '000 Debt outstanding (68% of PV of Cash flows) Post tax interest Expense Post interest FCF Debt Service