Looks a sound strategy by the board. As a holder of IPG and ECL, I rate the I CMI business highly with good growth prospects, and can see greater value in the hands of IPG management. However the CMI business is cyclical in nature, so it won't offer up any more stability in earnings.
The numbers stack up for IPG. The current guidance today is for 1H24 EBIT for IPD Group to be up about 20%. If we assume FY24 EBIT of about $27m (standalone basis) and an EV of about $340m, IPG is trading at over 12x FY24 EBIT, well above the offer price of about 7x CMI FY24 EBIT. So the arbitrage works.
Proposed debt looks modest, although bear in mind it could creep higher due to the high working capital requirements of these businesses.
Ann: Trading Halt, page-14
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Last
$5.24 |
Change
0.270(5.43%) |
Mkt cap ! $541.7M | |||
| Open | High | Low | Value | Volume |
| $4.96 | $5.30 | $4.96 | $994.1K | 190.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 992 | $5.23 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.25 | 891 | 3 |
View Market Depth
| Last trade - 10.50am 02/09/2024 (20 minute delay) ? |
| IPG (ASX) Chart |