Ann: API: Conditional proposal for API from Wesfarmers, page-8

First 8 Last

Share
Profile

Follow
norah123

1,625 Posts.

139

13/07/21

05:47

Post #: 54455827
Share

Originally posted by KeenDog: ↑

What are the other options that WES could acquire at a discount with far greater earnings?

Some of the companies I've thought would be great add ons include

Retail:
JBHIFI , Babcor

Resources:
IGO , Ozminerals

Building:
Reece

I know what you're saying but I trust that management in seeking this deal (API) believe that the offer is at a discount and that they have a plan to grow API at a faster rate than the present management who is largely influenced by SOL.

I like the fact that at a retail level Chemist Warehouse are a dominant number one and with a planned IPO this year circa $5B AUD gives an indication that WES must believe API with the WES touch can get growing towards this size therefore having somewhat of a duopoly in the market.

To be honest my only alarm bell ringing is why SOL have agreed to sell. Robert Millner likes to hold onto businesses long term and must believe SOL is getting a good deal so you have to ask what is motivating SOL to sell.

Expand

thank you for your insightful and informative answer. If inflation takes hold, API will do better than they currently do without really doing anything and SOL might not have taken that in consideration. WES has a good track record so they might know something that we don’t, however, we are all bound to the known wait-and-see approach for how this one turns out. However, I really appreciate you taking your time and giving me your view point. Cheers

WES Price at posting: $58.29 Sentiment: Hold Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

What's causing the cost-of-living crisis, and how to navigate it

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint