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Real-Time news about Mdm Engin. (London Stock Exchange): 0 recent articles
|sar10: I am really tempted to purchase more at this price - like somebody has already said, its a 3-5% mark up if/when the deal goes through + the possibility of a final dividend.
Anybody any idea why the share price isn't closer or on £1.70???|
|davidosh: So 18 months down the line and the offer is 7% lower than the last one...
· Recommended merger with ASX-listed Sedgman Limited ("Sedgman") (ASX: SDM)
· Offer Price of £1.81 per MDM share values MDM (on an undiluted basis) at US$109 million1 (£67.9 million)
· 100% cash consideration to non-Key Shareholders|
|m1das_touch: There's little doubt really - it's a recommended offer by the board, and those almost always go through.
I think the only doubt will be on the upside, i.e. if someone comes along with a better offer. I was going to sell out this morning if the share-price re-rated to the offer, but might as well hang on now until this plays out.|
|m1das_touch: -- Recommended takeover offer from global engineering and construction group Foster Wheeler
-- Offer price of GBP1.70 cash per MDM share
-- Foster Wheeler to acquire all of the ordinary shares and options in issue in a cash transaction of approximately GBP65.3 million (US$109 million)
-- Cash offer represents an attractive premium to recent share price trading levels and provides realisation of value for MDM shareholders
-- Shareholders representing 42.4% of the issued ordinary shares of MDM have executed agreements under which they have agreed to vote in favour of the Offer
-- Offer subject to MDM shareholder approval and other conditions including competition approval
MDM Engineering Group Limited (AIM:MDM) is pleased to announce that it has entered into a merger implementation agreement ("MIA") with Foster Wheeler AG (Nasdaq: FWLT) ("Foster Wheeler") under which Foster Wheeler's BVI subsidiary, Foster Wheeler M&M Limited, will acquire all of the ordinary shares in MDM, subject to MDM shareholder approval and certain other conditions (the "Offer", the "Transaction" or the "Merger").
Under the terms of the Merger, MDM shareholders will be offered GBP1.70 cash for each MDM share they hold (the "Offer Price").
The Offer Price of GBP1.70 cash per share represents:
-- A premium of 14.5% to MDM's closing price on 12 March 2014 of GBP1.485;
-- A premium of 17.4% to the 30-day VWAP prior to 12 March 2014 of GBP1.45; and
-- A premium of 17.3% to the 90-day VWAP prior to 12 March 2014 of GBP1.45.
Well that's come completely out of the blue! To my mind it significantly undervalues the company, but of course private shareholders will have no say.
Nice to get out with a good profit, but I was seeing this as one of my long-term ISA holdings - so will be looking for a new home for these funds now.
|jeffian: I'm not surprised by the immediate reaction. Although the results are 'as anticipated', not everyone will have realised that profits are expected to be lower this year after last year's 'exceptional' gains. Hopefully will settle down now, but might be shaky in the short term. Mind you, bearing in mind the previous interest of Sedgman and what's been happening over at KENZ, any weakness of the share price could attract predators again.|
|mickharkins1: Fully agree M1das. Results were pretty much as expected and good to see that even in tough times they generate enough cash to, I believe, justify the current share price (before this morning's drop!).|
Agree with your comments and I wasnt trying to mislead - its one of the reasons I stated that the share price was 121p at the time the report was authored obviously now the share price is higher the yield will be lower at approx 5.3. I actually got in at 123.5p so the yield is great.
I think it is quite clear from company communications that last years exceptional results were due to the completion bonus. If we compare 2012 actual pbt to 2014 forecast then the progress can be seen. Just imo.
I was also curious about the potential for another completion bonus this year...that would certainly be, well, a bonus!
|jeffian: Yes, I've now seen the figures too. Not quite as you say because both the share price and the £/$ exchange rate has changed since July. The forecasts are for 2013 eps of 26c (16.15p) rising to 27c (16.8p) in 2014 with a dividend 2x covered. At the current price that's a PER of 9.4x and divi yield of 5.3%. Still OK, I think, but not quite as stated. Also, down on last 'exceptional' year. The point is made that last year was distorted by a substantial 'completion bonus' and I wonder whether the market actually expects/understands the current year to be down? Equally, the point is made that there is scope for further 'completion bonuses' within existing contracts so there could be further nice surprises along the way. It would be nice if they could maintain the 'underlying' dividend (18c) even if that stretched the 2x covered 'rule'. Nobody likes to see their income go down!|
|sar10: Finally managed to get a copy of the Canaccord note. Makes decent reading imho and with a 'prudent' approach they have upped their pbt forecast slightly from previous forecasts for both this and next year. Forecast yield is 7.4 % for 2014 - nice!
They have a buy rec target 161p which they indicate is 'undemanding'. Note that the share price was 121p at the time this was authored.
|dozey1: Last year the pre-close update was 17 Oct; the interims were on 28 Nov which is the same this year according to Sharescope. Last year the merger with (takeover by) Sedgeman was announced with the interims at 181p per MDM share. My feeling is that it won't be long now before that is reached, though I suspect it depends a bit on the SA Rand or is all the work quoted in US dollars?|
Mdm Engin. share price data is direct from the London Stock Exchange