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Due to our holding that as of the valuation date 20 percent
(or 720,253 shares) of the estate’s 3,601,267 Reliance shares
likely would be repurchased by Reliance and therefore should be
valued under that method, the dribble-out period for the estate’s
2,881,014 remaining Reliance shares (80 percent of the estate’s
3,601,267 Reliance shares remaining after the Reliance
repurchase) would be shortened from approximately 39 months to 31
months, to account for fewer (namely 2,881,014) Reliance shares
to be dribbled out.
Under Kimball’s methodology, in calculating the estimated
gross value of the dribble-out shares we multiply the 2,881,014
shares to be dribbled out by the $20.8125 valuation date trading
price ($59,961,104) and add the estimated dividends that would be
paid on the estate’s Reliance shares during the dribble-out
period ($744,031) resulting in a total gross value of
$60,705,135. Using Kimball’s 13.2 percent discount rate, the
$60,705,135 gross value would have a $51,414,274 discounted value
as of the valuation date, reflecting a 14.4-percent discount from
the valuation date trading value.
As set forth in the schedule below, our total fair market
valuation of the estate’s 3,601,267 Reliance shares is
$64,320,892, reflecting a 14.2-percent overall discount from the
$74,951,370 valuation date trading value:
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