Bloomberg News (21 Dec 2020)-4th quarter will mark the highest...

Bloomberg News (21 Dec 2020)
-4th quarter will mark the highest number of unsolicited bids, 12 bids worth A$26b
- Dealmakers expect would be buyers to stay active in 2021
-Surge in surprise suitors shows would-be buyers see bargains persist in pockets of the market, setting up a potential spree of public takeovers in 2021. Some companies continue to trade materially below their fair value. There is a lot of search going on. "Morgan Stanley, Head of General Industrials Investment Banking"
- Hopeful acquirers could still be worried their target would only get more expensive as the economy recovers. Bidders may believe it's more important to get in first. "Goldman Sach, co head corporate finance"

OMH is definitely a cheap target to acquire for the following reasons:
- Huge mismatch between price and value: OMH current share price still drop 60% from its high of $1.70, PE of only 4x on FYE 2021/22 (compared to peers like Press Metal PE 72x)
- Rotational play into value/cyclical stocks is currently underway. Recovery cyclicals (industrial material) to outperform once economic recovery unfolds.
- Recovery of the steel industry both in China (already underway), and globally(US, Europe, Asia exc China) with projected growth of 6-12% (worldsteel.org)
- OMH strategic asset (its Sarawak smeltering operation) is among the largest in Asia outside China. it does not face any power stoppage issue like what is happening to the Chinese furnaces now. And there is room for further expansion/growth. It would seem like quite a good fit to maa as many companies hungry for earnings/profits through cheap acquisitions and diversifying outside China
- OMH itself is already a compelling investment story and all it needs is just a good IR to present its investment case to investors. Just by bring its listing in another exchange would give it a re rating and make a big different in its market value (the difference could be in billions!!!)

Any potential takeover bid, if it really happens, would certainly be > 75-100% premium given OMH is so undervalued at current share price. That would still be nice uptide for a quick profit.