Alpine has accused minority shareholders of playing the money game but it is Alps that is playing the money game by trying to acquire Alpine at a deeply discounted value. Minority shareholders are merely demanding the fair value that they deserve.

 

The price that Alps is offering is deeply egregious even at the quickest of glances:

-          Offer is below Alpine’s book value

o   Alpine has grown its operating profit by 145% from the prior year, beat its original operating income forecast by 112% and beat its three times revised up forecast by 25% - we find it shocking that the SER not only gives no value to Alpine’s excellent business, but values Alpine below book value this that the company itself has no value and has no earnings

-          Discounted valuation to peers

o   Alpine’s management themselves have dismissed Clarion, Pioneer and JVC as true competitors as they say they have commoditized businesses that will struggle to survive unlike Alpine

o   The SMBC valuation clearly did not examine these comparators in any detail

o   Even at a quick glance, shareholders will realize that Alpine has a far stronger balance sheet that the competitors

o   Taking securities, pensions and net current assets into account, the discounted valuation becomes even more absurd:

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-          Alpine’s stock price remains capped by the SER

o   As per the graph below, Alpine has exceeded its earnings expectations by 1,066% and beaten its original and revised forecasts three times in the last year this would have led to a rerating of the stock price significantly higher, but Alpine’s stock has been capped by the low SER valuation

 

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