BA-Merrill Lynch 29/09/2009 3 Neutral $11.30 7.8% Lend Lease will acquire the remaining 56.8% of shares it doesn’t already own in retirement play Lend Lease Primelife for 31c per share. The broker notes this represents a 44% discount to its valuation of 55c.
All up, the broker sees the deal as being unsurprising given LLC’s stake and its new found commitment to retirement. Merrills thinks the deal will be around 2-3% accretive and will see gearing increase modestly to 9%.
The Buy call and $11.30 price target are maintained.
RBS Australia 29/09/2009 1 Buy $14.40 37.4% The company has made an offer to acquire the balance of Lend Lease PrimeLife ((LLP)) and on the broker's numbers a successful bid would slightly lower earnings per share over the next three years.
Longer-term however the broker sees upside from the move as the housing market recovers and as demand grows and so it suggests the acquisition is a positive one.
There is no change to its Buy rating or $14.40 price target on the stock.
LLC Price at posting:
$10.48 Sentiment: None Disclosure: Held
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