M&A In Broad Daylight

APM Human Services (APM) rallied as much as 68% on Monday, 19 Februaryafter the company confirmed it received a conditional and non-binding indicative takeover from CVC Asia Pacific at $1.60 cash per share. To add some context –APM is a provider of government and private sector employment services. The stock fell as much as 70% between November 2023 and late January 2024 following a number of earnings downgrades. This was due to persistently strong labour markets (resulting in less client flows into employment services programs), lower volumes of placements in key markets and tightness in healthcare recruitment markets. Despite its underperformance, the stock was loved by analysts. Most of which remained Buy-rated with optimistic price targets throughout its downward spiral. What’s interesting is the sheer amount of coverage and speculation about a potential takeover offer from the AFR. Feb 12 – Investment banks circle sinking APM Feb 13 – UBS waiting in the wings at APM Feb 18 – CVC seeks to re-enter Australian market with APM buy That offer finally came through from CVC on Monday, 19 February. Following the rumours would have paid off handsomely.

Here's today's Market Index: APM has a long way to go .. up. it's a broker's darling for good reason. TO will eventually happen.