"Our
adjusted book value of nearly $50 per share continues to accrete in line with our superior long-term track record of 17% compound annual growth.
Its book value per share of $30.22, book value per share including the Deferred Gain of $34.86 and
adjusted book value per share of $35.55 increased by 6.0%, 4.0%, and 17.4% during the first nine months of 2018, respectively, each computed after taking into account dividends declared.
The number of Two Harbors shares issued will be based on an exchange ratio to be determined by dividing 96.75% of CYS'
adjusted book value per share by 94.20% of Two Harbors'
adjusted book value per share.
Shares of FNB Lilly will be valued at an amount equal to 100% of FNB Lilly's
adjusted book value. The transaction is subject to an election and allocation procedure that will result in at least 50% of the consideration being paid as Advantage common stock and with no more than 50% of the consideration being paid in cash.
We expect this transaction to be accretive to Assured Guaranty's earnings per share, operating shareholders' equity and
adjusted book value.'
The number of shares of common stock of the combined company (and number of units in the surviving partnership) was determined based on an exchange ratio determined by dividing the SAM
adjusted book value per share by the ZFC
adjusted book value per share as of July 31, 2016.
The stock now trades at 8.7x 2015 earnings, 1.2x 2015 book value, and 2.0x 2015
adjusted book value (excluding Tier 1 Sukuk).
All this translates into a
adjusted book value of $642 a share.
This adjustment in book value results in an
adjusted book value.
A common valuation technique in valuing professional practices, the
adjusted book value method-net asset value method, calculates the value of a professional practice by subtracting the economic value of the business' liabilities from the total value of its assets, resulting in the value of its equity, or partners' capital.
Conversely, the consummation of the transaction is expected to result in Adjusted Earnings per diluted share attributable to common stockholders of between $2.65 and $2.90 and an increase in
Adjusted Book Value per share of between $2.90 and $3.10, as a result of the reversal of loss and loss expense reserves and the recognition of a gain on Ballantyne notes held in the investment portfolio.
