Takeover target #1, Torre Industries – Torre is trading at a 70% discount to its 2016 share price. The company produced around 10.89cps normalized earnings in the past year and its net asset value is 169c, compared to a share price of 126c!
A private equity consortium including its previous CEO is targeting it. The company will be split up in two – and I am certain the new owners will get massive value from the deal – as even with a 40%+ premium they are offering investors for the share – they still get it at less than the book value of its assets!
Takeover target #2, Interwaste - When Interwaste reported results in August this year it grew revenue by 24% to R595 million.
Its earnings shot up 41%, and it generated R78 million in cash in a mere six months. And despite this, the company was worth a mere R400 million. That means anyone acquiring it, would acquire a business that makes close to R200 million cash a year – for a R400 million-acquisition cost on the JSE.
Obviously if you are an international company with lots of cash available, this deal is too good to let pass. And that’s how this latest announcement of Interwaste came to be.
A French company, Seche Environment, has made an offer to acquire the whole of Interwaste and de-list the company from the JSE. Seche operates in 15 countries, and acquiring Interwaste would form part of its move into South Africa’s waste and recycling markets.
It is offering shareholders 120c per share, with the average price for Interwaste shares being around 86c before the offer.
Takeover target #3, Clover – With a revenue increase of 8% and profits up 223.8% in June 2018 Clover’s PE of 8.7 just looked too attractive. On 19 October, the company announced that it is in negotiations with a third party that is interested in acquiring all of the company’s shares, and de-listing it.
Not much more details are available now – but the deal is shaping as we speak.