I don't know what you would call the current RTO chart formation? |
Started up 6% finished down 12? |
rare for the acquirer to be higher so no doubt m&a arb specialists jumped on that one but the lawyers are already getting started on this one
TMX Merger Investigation: Halper Sadeh LLP Announces Investigation Into Whether the Sale of Terminix Global Holdings, Inc. Is Fair to Shareholders; Investors Are Encouraged to Contact the Firm
taking over a us company is always a mess. they want the earth but when they do the taking over they want it for free.
i dont own these any more and was hoping for a pullback but will be taking a look at the break terms closely. |
1040 GMT - Rentokil Initial shares fall 3% after the pest-control and washroom-service group said it plans to buy Terminix Global Holdings Inc. in a deal valuing the U.S. company at $6.7 billion. Rentokil is paying a fairly big premium, though a significant part of that is accounted for by its own shares and the deal could boost the U.K. company's earnings, AJ Bell says. "The use of the word 'transformational' to describe the deal by Rentokil boss Andy Ransom may also be giving some investors pause for thought," AJ Bell's Investment Director Russ Mould says. "It's not hard to see the strategic rationale behind the move, but so-called transformational deals often transform the purchaser's prospects for worse rather than better."(philip.waller@wsj.com) |
If my sums are right, dilution means existing shareholders will only be getting 74% of future earnings. That means a hike of 35% in earnings just to maintain the existing EPS. If diluted EPS is to rise by "mid-teens percent" in the first year I think that requires this deal to generate a 55% increase in earnings.
With an historic profit of $41m (£31m) that would be that kind of magnitude, based on a current pretax forecast for RTO of £78m for y/e April 2023.
RTO are not only buying with shares though, there's also the cash element. |
I have only read the RNS not Terminix accounts so far , so only have the note buried at the end (suspicious) of their profitability to go on.
So cannot see if that pathetic $41m profit is an outlier or what cash it generates
but it seems the market is now questioning the deal more than at the open.
All I can say to that , is keep up guys ! |
Note this:-
"Transaction is expected to deliver mid-teens percent accretion to Rentokil Initial's earnings per share in the first full year post completion"
Is it right to assume they mean diluted earnings per share? Obviously makes a difference when you dilute 1859m shares with a further 643m. I think it must mean diluted EPS. If so, wouldn't that justify a mid-teens percent hike in share price? Perhaps that's why they were up 6% shortly after open?
Wait for the broker notes. Are they really going to say this is a duff deal, with "mid-teens percent accretion to Rentokil Initial's earnings per share in the first full year post completion"? |
Just WHY ? |
" During 2020, Terminix generated a total revenue of US$1.96bn, adjusted EBITDA of US$345m and profit from continuing operations before income taxes of US$41m. As of September 30, 2021, Terminix had gross assets of US$4.45bn."
Oh dear.
$6.9bn for profit of $41m
Even for $191m including assumed combination savings.... ?
All well and good saying it has $4.45bn in assets , those assets are clearly Not performing....
With a break clause costing RTO $150m we cannot even hope this does not happen.... |
More to go? New hygiene growth strategy to be formally rolled out in September |
 This inviting battery metals play is just 'ironing out' a transformative funding deal.
Ironveld Plc (IRON) 0.73p Market cap. £9.6M.
30/03/2021 07:00 UK Regulatory (RNS & others) Ironveld PLC Interim results for the 6 months ended 31 Dec 2020 LSE:IRON Ironveld Plc
" ... Talks at an advanced stage with a major partner seeking to take a strategic equity stake in the Company at a premium to the current share price. ...
Possible transaction
The Company is at an advanced stage in talks with an investor seeking to take a substantial strategic equity stake at the listed company level at a premium to the current share price in order to assist the Group with the next stage of its development. Whilst there are currently no guarantees that such a transaction will be completed or by when, the Directors are hopeful of being able to conclude a meaningful transaction in the coming weeks. ..."
01/06/2021 07:00 UK Regulatory (RNS & others) Ironveld PLC Luge Mining Right Application Accepted LSE:IRON Ironveld Plc
" ... Possible Corporate Transaction
On 30 March 2021, the Company announced that it was in talks with a South African investor seeking to take a substantial strategic equity stake at the listed company level. Whilst progress on the transaction has taken longer than initially expected, positive discussions have continued and the Directors remain optimistic that a deal can soon be concluded. ..." |
Looks to be inline with FY21 forecasts and IMO currently priced about right IMO.Still contemplating if organic growth post covid will at least match the tailwinds they have had during covid, quality company but pricey nonetheless......mmmm. |
Kazera Global (KZG) has also performed very well recently, after announcing an investment at a large premium to the current KZG share price of 1.95p.
"KAZERA GLOBAL – TRANSFORMATIVE INVESTMENT AT OVER 100% PREMIUM TO CURRENT STOCK PRICE – 2.7P. BUY!
March 18, 2021 | Posted by admin
Well, the eagle most certainly has landed (the Eagle being Kazera’s logo). Over the past four months or so, the board has made no secret of the fact that a succession of potential investors has been taking a good look at Kazera with the aim of providing the cash to put the company’s world-class tantalum mine in Namibia back into operation.
It has certainly been worth the wait as this morning astute investors have truly received manna from heaven. Kazera will shortly (all that is now required is for the Namibian receiving bank to process the funds) be on the receiving end of €9.13 million at a price of €0.03142 per share, which is 2.70p to you and me. This price is well in excess of the current share price to state the bleeding obvious; but this isn’t the only good news.
The issue has been priced at this sort of level to reflect the company’s net asset value when taking account of developments and prospects in the diamond and HMS operations – although the statement this morning stopped short of saying as much. In mathematical terms, the £7.87m in sterling sum will result in the investors owning just shy of the all-important 30% of Kazera which would have triggered a bid. ...
At the time, Larry Johnson, CEO, was quick to point out that – “The proposed investment will be transformational in allowing us to build the water pipeline, construct the tailings dam that will enable us to recover water whilst facilitating waste storage in an environmentally sound manner, and to bring the processing plant back online. It will also allow us to continue to explore the vast property with a third phase core drilling program, so adding further valuable resource to our world class tantalum and lithium assets. We will also be able to continue exploring other opportunities available to us and to accelerate progress on our recent investments in South Africa. …” This comment by CEO Mr Johnson clearly hints at material increases in the company’s current JORC main resource estimate.
The other good news concerns diamond production where 242 carats were recovered in February 2021 (noting however that the company still has material amounts of diamond bearing gravels to process) which, assuming a highly conservative sale price of $200 per carat, means that the South African diamond division should now be covering its overheads. Better than that, the operation looks to be on the verge of decent profitability. Due to the higher grades expected from the new block combined with receipts from the joint venture (which were both mentioned in a recent announcement) this has the prospect of making the diamond operations a major cash generator for Kazera in the near future.
As if that was not enough, the HMS operation acquisition deal looks like it will imminently be given the OK by the DME in SA. The route of the problem is that there have been big delays in processing mining rights applications in South Africa. These matters have recently been raised in the South African Parliament and the local feeling is that a number of pending cases will now be dealt with reasonably quickly. Vendor Tectonic Gold has done the decent thing and continued to show their support for the HMS project by agreeing to an extension to 30 June 2021. ...
We initiated coverage on Kazera with a Conviction Buy stance in early August 2020 at 0.70p as per HERE with a first target price of 2.50p. Given the magnitude of this investment and the use of these funds means that we will doing a full update note shortly. Readers of our initial note will be aware that the target price was heavily discounted. Our unrisked NPV (and still at a heavy 12% discount rate) equated to $36.85m. With a likely resource upgrade, the lithium being brought into play and the HMS side also to be heavily unrisked upon licence approval we are likely looking at a £40-50m market cap, cash funded and cash generative company before the year is out. Based on the enlarged share count this would give us a new target of between 4-5p.
Buy now if you can at a discount to the material investment by the new investors while you can." |
Corcel (CRCL) has broken upwards this month, smashing through its one year highs.
Currently 2.05p, there should be plenty more to come.
"CORCEL – TODAY’S MAST IPO HIGHLIGHTS VALUATION DISJOINT WITH CORCEL. REVISION OF PRICE TARGET TO 12.91P. BUY.
April 14, 2021 | Posted by admin
By Dr. Michael Green
... Corcel is the old Regency Mines which is best known for its vast Papua New Guinea nickel laterite project Mambare, which on its own was once valued at £40 million. It has all been a bit quiet there over recent years as the company has gone through substantially restructuring. We believe that the decks have now been cleared ready for a period of substantial growth. With James Parson now at the helm, investors can look forward to creation of a highly relevant vehicle. With the latest funding, it does look as though the real magic is really about to start now.
The company is being positioned to really benefit from expected price hikes in battery metals. It has got to be said that the transition to a low carbon world has begun in earnest. Storage is needed for renewable energy to be a viable and stable source of energy, and hence the growing clamour for batteries and battery metals where a supply crunch is expected in the mid-2020s onwards with potentially big price hikes. ...
There is a lot going on at Corcel. It is abundantly clear that the company has a cracking pipeline of newsflow planned which could keep the share price nicely on the boil over the balance of this year, with lots of inflexion points which could give the market a chance to continually upwardly reassess Corcel’s value. ...
Our SOTP valuation totalled £52.41 million. Based on the number of shares currently in issue (321,381,614) the per share valuation would come out at 16.31p. On a fully diluted basis, we have adjusted the number of shares by ignoring the warrants that are well under water as they are exercisable at 25p and 60p. This leaves a total of 423,344,819. Adding the funds that would result from the options being exercised of £2.24 million gives a total of £54.65 million, which equates to 12.91p. We have chosen to use this as our new target price – more than four times our previous target price of 3.19p.
We are more than happy to reconfirm our Conviction Buy stance for Corcel, with a new target price of 12.91p." |
CITIGROUP CUTS RENTOKIL INITIAL PRICE TARGET TO 600 (650) PENCE - 'BUY' |
UBS CUTS RENTOKIL INITIAL PRICE TARGET TO 440 (460) PENCE - 'SELL' |
TRD had a good run from 12P
Ten bagger to date.
Director buying on Friday |
This marine technology group for global aquaculture etc. could set a 'benchmark' for multibaggers.
Otaq Plc (OTAQ) 28p Market cap. £8.6M.
25/02/2021 07:00 UK Regulatory (RNS & others) OTAQ PLC Non-Executive Director Appointment
"OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, is pleased to announce that Malcolm Pye will join the Board of OTAQ as a Non-Executive Director with immediate effect.
Malcolm founded, and from 1999 to 2019 was Chief Executive of, Benchmark Holdings plc ("Benchmark"), the world's leading aquaculture health, nutrition and genetics business.
Malcolm has over 35 years' experience in international agribusiness through his various roles at Hillsdown Holdings (then HMTF Group), and through building Benchmark from the initial start-up into a major international aquaculture technology business serving the global salmon, shrimp, tilapia and farmed fish industries. Malcolm focused Benchmark's activities on animal health, breeding and genetics, advanced nutrition and knowledge/technology delivery and led the flotation of Benchmark in 2013, maintaining a lead role in investor engagement. ...
Malcolm's work with Hillsdown Holdings in the early to mid-1990's influenced a career-long focus on sustainable food production which formed the basis and inspiration for the creation of Benchmark Holdings.
Alex Hambro, Non-Executive Chairman, commented: "We are really delighted to welcome Malcolm to the Board of OTAQ. Malcolm's experience in, and knowledge of, the global aquaculture industry is unparalleled, and will be of huge benefit to OTAQ as it develops and commercialises additional sustainable technologies and services for the aquaculture farming and producing communities. Our core SealFence acoustic deterrence system has significant opportunities for growth in geographies where Malcolm has built strong long-term relationships. Furthermore, his knowledge of additional farmed species other than salmon will be extremely helpful as we expand our range of products ." ..."
BMK's current market capitalisation: £385.20 million. |
Part of my 'core to excel' in 2021 is this unique hybrid play on the developing battery metals bull market.
Corcel Plc (CRCL) 1.25p Market cap. £3.64M.
01/12/2020 07:00 UK Regulatory (RNS & others) Corcel PLC Final Results
" ... Chairman and CEO Statement
Overview
The twelve months period to 30 June 2020 has seen the Corcel Plc (previously Regency Mines Plc) ("the Company", "Corcel") story materially transformed.
We are delighted to report that Corcel today, despite a highly challenging period driven by the global pandemic, is progressing a balanced portfolio of mineral exploration projects, coupled with UK based energy generation and storage at the intersection of battery metals mining and their end use in both energy storage and the electric vehicle revolution. We believe Corcel, with its revamped strategy, fresh capital structure and re-energised team, following the December 2019 relaunch, is now well positioned to take advantage of the growing trends, underpinning the world's transition to a low carbon economy. ..." |
MORGAN STANLEY RAISES RENTOKIL INITIAL TARGET TO 630 (620) PENCE - 'OVERWEIGHT' |
Syme Rto now delivering.
A Big Mac next ? |
LSE % Gainers Top Lists
EPIC Name %
MCS Mccarthy & Stone +40%
RMS Remote Monitored... +28%
It was great to see RMS finish second on the top gainers list yesterday, closing up 28% at 0.875p for the weekend.
This capped off a great week, in which RMS finished up 38.8% from 0.635p last weekend.
RMS has now nearly trebled from my 0.32p tip price here on 1st. August (4 posts above).
Meanwhile, my BOOM tip (post above) closed at 187.5p yesterday, a gain of 21.36% on my tip price here about a month ago.
But there should be plenty more to come on the BOOM front. |
BOOM takeover news could be soon, which could 'rocket it to the moon'.
And have shareholders whistling a happy tune, at an antidote to the pandemic gloom.
Audioboom Group (BOOM) 154.5p Market cap. £21.72M.
19/02/2020 07:00 UK Regulatory (RNS & others) Audioboom Group PLC Review of Strategic Options - Formal Sale Process
" ... The Board currently expects for the Strategic Review process (including the formal sale process) to conclude during the third quarter of 2020. ..."
21/07/2020 07:00 UK Regulatory (RNS & others) Audioboom Group PLC Half-year Report
"... Retained Raine Advisors Limited ("Raine") as financial adviser in relation to examining strategic options for the Company, and subsequently established a formal sale process pursuant to the Takeover Code. This process is ongoing and the Board, management and Raine remain engaged with a number of interested parties ..." |
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