Elementis Share Discussion Threads

[venezuela45] 07/12/2020 07:54

@solarno - I don’t believe there are any other bidders, if there were why would they not have bought the business last year? They could have got it then for the same price they could get it today.

MT just thought they could pick it up on the cheap.

[robsy2] 07/12/2020 07:52

I feel that bid or no bid,the share price will rise towards 200p in due course.

[babbler] 07/12/2020 07:51

Nicely predicted. Next offer £1.40 lol.

[solarno lopez] 07/12/2020 07:50

Not necessarily as you seem to discount other bidders

[venezuela45] 07/12/2020 07:47

Exactly as I predicted last week. You do have to question who is advising MT, making an offer of 130p on a closing share price of 126p for a company which pre COVID was trading at 180p, and will be back the in <12m is just amateurish.

As I said before they appear a bunch of vultures who were looking for a cheap deal and got caught out by a vaccine. It was clear even before last night 200+ would be required to get a deal done.

This deal is dead.

[solarno lopez] 07/12/2020 07:45

So where do we go from here ?

I suspect but have no evidence that another bidder has been waiting for MT to run out of steam and launch its final bid before announcing in order to avoid a protracted bidding war

[ifthecapfits] 07/12/2020 07:24

200+ would be most welcome.

[robsy2] 07/12/2020 07:19

HOLD I guess.

4. The proposal significantly undervalues Elementis and its future prospects
-- Personal Care, Coatings and Talc businesses have achieved an average adjusted operating profit margin of c. 15% over the last three years6. Our medium term Group adjusted operating profit margin objective is 17%

-- Specialty chemicals companies in the approximately 14%-17% margin range currently trade at c.17-19x EV/EBITA 2021E7

-- Applying this range to average operating profit for Elementis' Personal Care, Coatings and Talc businesses over the last three years implies a valuation of 163 to 190 pence per Elementis share8

-- This excludes Chromium which could be valued at an additional c. 35 pence per Elementis share9
-- In total, including Chromium, this illustratively implies a valuation of c. 200+ pence per Elementis share as Elementis delivers on its medium term objectives

[solarno lopez] 07/12/2020 06:56

Thanks Mitch

[toffeeman] 06/12/2020 20:22

I reckon MT are trying to make a turn by flushing out a serious offer - 130p cuts no mustard

[solarno lopez] 06/12/2020 18:36

What evidence do you have to say that

[mitch101] 06/12/2020 18:31

ELM rejects 3rd offer from MT of £1.30. Interesting.

[epistrophy] 03/12/2020 11:02

Back into the FTSE 250 this month.

[venezuela45] 30/11/2020 19:10

Expecting MT to submit a bid of 130p later this week. Will be rejected by shareholders.

[toffeeman] 30/11/2020 13:35

130; then 150; then gap to close to 160 - Brokers guessing!

[wynmck] 27/11/2020 10:44

Morgan Stanley initiates ELM with OVERWEIGHT ...tgt 138p

[richjp] 26/11/2020 14:14

I have just added on the basis of that broker note and my previous thoughts.

[wynmck] 26/11/2020 12:00

Berenberg raise to a BUY today and target price increased to 145 from £1

[solarno lopez] 26/11/2020 08:05

Your last paragraph is on the mark richjp

[richjp] 25/11/2020 17:16

I am not always bothered about speculating about the name of who else might bid. A couple of years ago, Fidessa who are in banking software, turned down an initial bid. Two other companies emerged and so it became a three way battle.

I used to work in banking software albeit a long time ago but I thought I still had a good idea of the most prominent players. As it turned out I had never heard of any of the three bidders. I think one of them might have been a private equity firm. I forget who won.

The point is that once an initial bid is made, others will often follow before the chance to acquire a tasty morsel is missed. Bids can come from surprising places.

[toffeeman] 25/11/2020 17:04

I thought CRDA - but they have gone after someone else

[robsy2] 25/11/2020 17:00

Who is the next bidder?

[solarno lopez] 25/11/2020 15:23

The next bidder is waiting in the wings for the current bid to run out of steam at which point they will jump in with a knock out bid.

They don't want to get in a bidding war at this early stage