In today’s briefing:
- Cleanaway (CWY AU): EQT Deal on Track, but the Vote Won’t Be a Formality
- EBOS (EBO AU): Still Under The Hammer Post Sigma/Chemist Warehouse Merger
- Uptrend Resumes For Aristocrat Shares
- Stockland – Treasure Chest: Stockland
Cleanaway (CWY AU): EQT Deal on Track, but the Vote Won’t Be a Formality
- EQT has reconfirmed its A$3.13 offer (A$3.095 net of dividend) for Cleanaway Waste Management (CWY AU) three times. Financing is well covered, and a SID looks likely.
- Shares fell 3.6% to A$2.66 today, likely reflecting sell-the-news profit-taking, a third exclusivity extension, growing institutional opposition and the 22 October AGM overhang.
- The scheme vote should pass, as confirmed dissent (10.3%) is insufficient to block it, but industry funds (14%) joining and the AGM spill risk make it contested, not a formality.
EBOS (EBO AU): Still Under The Hammer Post Sigma/Chemist Warehouse Merger
- EBOS Group (EBO AU), a healthcare and animal-care distribution group, is currently trading around a six-year low.
- That seems a tad harsh with bottom-line earnings up 39% over that timeframe. And a trailing yield of ~6.5%, well above peers.
- The Sigma Healthcare (SIG AU)/Chemist Warehouse combination remains a structural competitive concern. But right here, I’d be surprised if (potential) suitors are not running a ruler over EBOS.
Uptrend Resumes For Aristocrat Shares
- Michael Gable from Fairmont Equities suggests the consolidation in Aristocrat Leisure shares is ending, with a new uptrend to resume.
Stockland – Treasure Chest: Stockland
- FNArena’s Treasure Chest reports on money making ideas from stockbrokers and other experts.
- Today’s idea is Stockland.
