In today’s briefing:
- Estia Health (EHE AU): Scheme Meeting on 15 November
- BOQ – Illustrative of Australia Bank Risks Even for Nearly Pure Mortgage Lender and Mkt Expectations
Estia Health (EHE AU): Scheme Meeting on 15 November
- The Estia Health (EHE AU) IE considers Bain’s A$3.20 (A$3.08 excluding paid dividends) offer fair and reasonable as it is above its valuation range of $2.83 to A$3.21 per share.
- The offer is subject to FIRB and possibly aged care industry approvals. The MAC clause risk, particularly around material regulatory events, is diminishing.
- This is a done deal. At the last close price and for the 30 November payment, the gross and annualised spread is 1.3% and 9.7%, respectively.
BOQ – Illustrative of Australia Bank Risks Even for Nearly Pure Mortgage Lender and Mkt Expectations
- The results for Bank Of Queensland (BOQ AU) are illustrative of risks for the mainstream banks in Australia and market expectations
- Even with almost all residential mortgage loans, BOQ’s credit costs rose from AUD13m to AUD71m YoY and Pillar 3 data shows mortgage NPLs up nearly 10% in past 2 months
- Net interest income only +6% YoY and -8% HoH, with operating costs +8% YoY and fee income down, there is nothing core holding the P&L together
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