In today’s briefing:
- United Malt/Malteries Soufflet: I’ll Drink To That!
- Musgrave Minerals (MGV AU): Ramelius’ Offer Edges past Westgold’s Offer
- Costa Group (CGC AU): Paine Schwartz Wants It Back
United Malt/Malteries Soufflet: I’ll Drink To That!
- Back on the 28 March, United Malt Group Ltd (UMG AU) entered into a NBIO with Malteries Soufflet at an Offer Price of $5.00/share, a 45.3% premium to undisturbed.
- After a lengthy due diligence process, the two companies have now entered into a binding agreement of A$5.00/share, by way of a Scheme. UMG’s board has unanimously recommended the bid.
- The Offer is subject to FIRB and other regulatory approvals. Malteries Soufflet and UMG are the second and fourth-largest maltsters in the world.
Musgrave Minerals (MGV AU): Ramelius’ Offer Edges past Westgold’s Offer
- Musgrave Minerals (MGV AU) has recommended a cash and scrip off-market takeover offer from Ramelius Resources (RMS AU) at 1 RMS share for every 4.21 MGV shares + A$0.04 cash.
- RMS’ offer is attractive compared to adjusted exchange ratios and peer multiples. The offer, which has a 50.1% minimum acceptance condition, has secured commitments from shareholders representing 12.13% of shares.
- At the last close, RMS’ offer is 14.9% higher than Westgold Resources (WGX AU)’s rival scrip off-market takeover offer of 1 WGX share for every 5.37 MGV shares.
Costa Group (CGC AU): Paine Schwartz Wants It Back
- Costa Group Holdings (CGC AU) listed in 2015 when Paine & Partners sold 40% of its stake in the company.
- Paine Schwartz Partners bought a 13.84% stake last year, increased it in March, and has now made an offer to buy out the remaining shares at A$3.5/share in cash.
- Short interest was over nearly 11 days of ADV to cover and short covering could take the stock higher sooner. This is a buy here.
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