So we're putting a 50 cent risk premium (minus dividends*) on this thing, says the market?
Ok ok, obviously it's more about a percentage risk premium: a full 11% gain can be made if the deal goes through, but with FIRB concerns, and that it's a "conditional, non-binding, and indicative proposal," I wonder how long we'll sit at this price.
*We haven't seen a cent since 1 June 2022 when 1.5 cents was paid out, so not exactly expecting much price disruption out of that...
**Edit: Oh I forgot to add that Tanarra Capital says yes but we want more which implies ...something?:
"“The bid’s in the ballpark, but we would have loved to have seen United Malt improve its operating performance before the takeover offer,” he said.“There’s serious strategic value in its assets. The replacement cost of those assets is probably higher than the bid price.“It’s a highly sought after network. Look at their US craft and Scottish distilling positions, they are market-leading, and it’s just about impossible for someone to replicate.”
