"Street Talk understands NRW took a very close look at fellow Western Australian contractor Primero Group prior to the latter's listing - handled by Canaccord - last July."
"The key for $725 million NRW is to make any and every deal accretive to its earnings. Primero is trading at 5.3-times next 12-month EBITDA or 8-times forward profit. NRW shares are at 5.2-times EBITDA (prior to the RCR deal) and 11-times profit, according to S&P Global Market Intelligence, which leaves it plenty of room to move.The question is whether it would offer cash or scrip. Scrip would most likely be the first option - it doesn't have a big strategic or founding shareholder it needs to worry about diluting, and could offer upside to the target."
NWH Price at posting:
$1.95 Sentiment: Buy Disclosure: Held
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