Logistics takeovers continue. CTE next?

$QUB/Cube Holdings’ agreed $60m bid for $CHR/Chalmers reduces the number of players in the Australian logistics sector.

Could Cryosite - the Sydney-based biotech logistics minnow with a market cap of $2.3m - be the next target?

Back in 2011, current Executive Chairman, Bryan Dulhunty, responded to an ASX query with this:

“The Company from time to time receives confidential, non-binding expressions of interest from third parties in relation to such matters as proposals for joint activities and proposals for the acquisition/merger of parts of the Company’s business.

“In recent months the Company had received a confidential, indicative, unsolicited, non binding expression of interest to acquire part of the business carried on by the Company.

“That expression of interest was not an offer capable of acceptance.

“Further communication…has led the Company to believe that the third party is no longer pursuing that proposal.

“The Company is not in negotiations in relation to any expression of interest.”

While Bryan Dulhunty made the above statement nearly eight years ago, it wouldn’t surprise if his remarks were salient today.

As posted, the medical logistics and cord blood space is being targeted by private equity.

The most recent deal involved CHAMP PE taking control of Cell Care Australia.

Cell Care Australia is CTE’s second ranking shareholder. It owns a strategic 19.7%.

Top ranking owner, Andrew Kroger, controls 36.95%.

An acquisitive party could be CHAMP. Or it could be an aggressive private player such as Mediport. Or it could be another listed company.

Any bid would need to be pitched at 20c a share or more. CTE shares closed the 2019 financial year at 5c.