In today’s briefing:
- CSR (CSR AU): Saint Gobain’s $9/Share NBIO
- Qantas – Two-Year Earnings Re-Set in Prospect
CSR (CSR AU): Saint Gobain’s $9/Share NBIO
- Cie De Saint-Gobain (SGO FP) is offering CSR (CSR AU) shareholders A$9/share by way of a Scheme, a 34% premium to last close. That’s a knockout price.
- The Offer is indicative. Confirmatory due diligence is ongoing. CSR board has, not surprisingly “unanimously resolved to pursue the offer at an agreed price of A$9.00“.
- A firm offer would be subject to FIRB and shareholder approval. Neither should pose an issue. Assuming a firm Offer is shortly forthcoming, this could be wrapped up late-July
Qantas – Two-Year Earnings Re-Set in Prospect
- With 1H24 results, Qantas followed Singapore Airlines in highlighting fare weakness in international markets and we cut our pre-tax income by 13% to FY24.
- We expect FY24 pre-tax income to fall 16% yoy but also expect FY25 to fall another 5%, as our EBITDAR/ASK remains 10% above FY19 levels following 12% in 2H24.
- While international markets continue to normalise, Qantas’s domestic market structure positions it favourably to continue to invest in customer service and product.
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