In today’s briefing:
- MMA Offshore: A$2.60/Share Cash Offer From Seraya Partners
- MMA Offshore (MRM AU): A Polarising Offer from Seraya Partners
- Boral (BLD AU): Seven Slams “Fundamentally Misleading” IE Report
- ADX Energy (ASX: ADX): Logging results at Welchau further derisk the discovery
- Ricegrowers Limited (SunRice) – H1 FY24 Highlights Brand Strength for Pricing
- Ricegrowers Ltd – H1 FY24 highlights brand strength for pricing
MMA Offshore: A$2.60/Share Cash Offer From Seraya Partners
- Marine and subsea services provider MMA Offshore (MRM AU) has entered into a Scheme with Singapore’s Cyan Renewables.
- Cyan, wholly-owned by Seraya Partners, is offering A$2.60/share in cash, a 11% premium to last close and a 31% premium to the 90-day VWAP.
- MMA shareholder approval and FIRB are the key conditions. This Offer will tentatively complete mid-late July.
MMA Offshore (MRM AU): A Polarising Offer from Seraya Partners
- Mma Offshore (MRM AU) has entered a scheme implementation deed with Seraya Partners at A$2.60 per share, a 10.6% premium to the undisturbed price (22 March).
- While the offer is attractive compared to historical prices, it is light compared to peer and historical multiples. Some shareholders are supportive, while others are not.
- The shares are trading at terms that suggest an expectation for a bump to get the vote up or a competing bidder. The offer has not been declared final.
Boral (BLD AU): Seven Slams “Fundamentally Misleading” IE Report
- In its 19th March Target Statement, Boral (BLD AU) rejected Seven Group Holdings (SVW AU) cash/scrip Offer after the independent expert (IE) concluded the Offer was neither fair nor reasonable.
- In its updated Bidder’s Statement, Seven slammed the IE report and its conclusions, calling the Target Statement “unbalanced, selective and risks fundamentally misleading Boral minority shareholders“.
- Of interest: the IE’s maximum value for Seven’s Offer is just 1.7% below its fair valuation range. Including a control premium. Yet Seven obtained control of Boral in July 2021.
ADX Energy (ASX: ADX): Logging results at Welchau further derisk the discovery
- The logging program has confirmed open fracture networks and vuggy porosity (matrix porosity) essential for well productivity coincident with hydrocarbon shows between 1346 m and 1702 m measured depth.
- This represents 356 m of gross interval across three interpreted lithological sequences.
- This compares with only 115 m of liquids-rich gas shows announced previously.
Ricegrowers Limited (SunRice) – H1 FY24 Highlights Brand Strength for Pricing
- We have compiled a summary of the results and outlook statements for our assessed peers of Ricegrowers Limited, trading as SunRice (ASX:SGLLV), with a particular focus on result drivers, outlook statements and resulting changes in FY24 consensus earnings estimates.
- We also review the current rice market. Most estimates were increased on the back of cost recovery from prior periods and improved seasonal factors, in particular a wetter-than-expected summer, with generally positive implications into FY25.
- Acquisitions continue to be a feature with Ridley Corp. (ASX:RIC), Elders (ASX:ELD), Grain Corp (ASX:GNC) and Bega (ASX:BGA) all making acquisitions over the last 6-months.
Ricegrowers Ltd – H1 FY24 highlights brand strength for pricing
- We have compiled a summary of the results and outlook statements for our assessed peers of Ricegrowers Limited, trading as SunRice (ASX:SGLLV), with a particular focus on result drivers, outlook statements and resulting changes in FY24 consensus earnings estimates.
- We also review the current rice market.
- Most estimates were increased on the back of cost recovery from prior periods and improved seasonal factors, in particular a wetter-than-expected summer, with generally positive implications into FY25.
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