CPE, MIRA may need to think about $4 for Bingo: CS
Feb 23, 2021 – 11.31amBingo Industries’ half-year result came and went, with little update for shareholders on its chances of being acquired by CPE Capital and its consortium partners.
In a 52-page slide deck, all Bingo said about the potential takeover was: “The parties are well progressed in due diligence and commercial negotiations are advancing. The Independent Board Committee (IBC) is continuing to review the merits of the proposal.”
It seems to be a case of no news is good news, as far as fund managers and analysts are concerned.
Credit Suisse analysts reckon there’s a 45 per cent chance of an agreed deal at $3.50 a share, which is more than they previously expected. CPE and its partners, including Macquarie’s MIRA, offered $3.50 a share to get due diligence.
Credit Suisse says CPE and co may have to bump their bid to get it past both Bingo’s board and shareholders.
“We think a final bid below $A4.00 is unlikely to be accepted,” they said.
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BINBingo Industries
$3.090 -0.96%View BIN related articlesFeb 20Aug 20Feb 211.8002.7003.600Updated: Feb 23, 2021 – 1.03pm. Data is 20 mins delayed.Bingo shares were at $3.05 on Tuesday morning, down 7¢.
A big factor in assessing Bingo’s current and future value is what’s in store for its Eastern Creek facility, according to Morgans analysts, who were looking for more disclosure at the half-year result.
“Unfortunately, BIN did not disclose the benefit that may be achieved by it potentially being approved for an additional 1.5mtpa to the licence limit for Eastern Creek (that can be utilised by MPC2 if market conditions improve).
“This could deliver a material increase over the $250m EBITDA target that BIN believes its existing assets can achieve under existing limits. We think this is important information for investors in the context of the proposal.”
Bingo expects the talks to come to a head within the next month.
