PLS pilbara minerals limited

PLS private equity takeover

  1. 177 Posts.
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    I wonder if the current price action on PLS is a move by a private equity body to either make a takeover or simply get a great return through the price movement that would result from a takeover offer. For reasons I outline below I think the starting price for any takeover offer would be around$6.45 (based on RIO's takeover of LTM.
    Given the current level of shorting 5% of shares could be easily bought for under $4 before any announcement needed to be made. Following this the price would be likely to continue rising based on speculation regarding possible takeover. I imagine a low ball offer would then be made under $6. A further significant number of shares would be sold at the initial takeover offer. Given the initial offer would be low the price would more then likely continue to rise.
    If this were to occur I see 3 possible scenarios:
    (1) The bidder is successful at a cost significantly below what the company is worth
    (2) the bid draws other takeover offers out of the woodwork
    (3) the initial buyer sells out at a much higher price then the cost of the shares they have accumulated and makes an enormous profit.

    My reasoning on the take over offer price I outlined in an earlier post. However it was as follows"
    Based on the relative value the market ascribed to LTM and PLS on October 4, an equivalent takeover price for PLS would be $S6.45. On October 4 LTM was $4.18 and PLS was 3.05. RIO is offering US5.85/LTM share: $AUD$8.85. Considering LTM has about $500million debt and PLS has a surplus of approximately $1 billion I would add 50 cents a share to the PLS price.
    RIO has justified its bid partly on the assumption that the current Lithium price has bottomed out (the counter cyclical argument for the bid).
    Therefore, it would be a reasonable assumption that any bidding war for PLS would start around $7 a share (making PLS worth about$21 billion).
 
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(20min delay)
Last
$1.71
Change
0.135(8.57%)
Mkt cap ! $5.502B
Open High Low Value Volume
$1.67 $1.73 $1.63 $146.9M 86.89M

Buyers (Bids)

No. Vol. Price($)
3 95209 $1.71
 

Sellers (Offers)

Price($) Vol. No.
$1.71 270706 3
View Market Depth
Last trade - 16.19pm 18/07/2025 (20 minute delay) ?
PLS (ASX) Chart
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