Takeovers

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Question asked 05/03/2022

Takeovers

Hi Guys, I notice CIMIC has received a takeover over at $22 by its main shareholder. I have seen some researchers say hold for the possibility of an increased bid. What are your thoughts? I would like to use the $22 and buy others that are bargains right now? There are also takeovers for LNK and CWN , would you sell both now rather than wait for the takeover to happen? Thanks for the service A must-read every day

Answer

Thanks Peter for the kind words.

CIM: its unlikely to receive another bid as the bidder already owns 82.95% of the stock. A competing bid would be futile.

CWN: the bidder Blackstone already owns 9.99% plus Packer owns 37% and is going with the deal. They still need to get to 75% shareholder approval + they need regulatory approval, so still some hurdles to get over. Shareholder voting happens in June hence the discount to bid price.

LNK: has been subject to a bidding war but has now agreed to a deal with Dye & Durham at $5.50 per share in cash plus a 3¢ per share fully franked interim dividend. This has a high chance of completing.

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CIMIC (CIM)

LAST UPDATED 04/03/2022 09:40

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