In today’s briefing:
- Mayne Pharma (MYX AU): The Scheme Booklet Should Calm Nerves
- Mayne Pharma (MYX AU): Scheme Booklet Dispatch Lends More Than A Veneer Of Support
- BHP: Last Strong Driver (Copper) Turns Volatile
Mayne Pharma (MYX AU): The Scheme Booklet Should Calm Nerves
- Mayne Pharma (MYX AU) has released its scheme booklet regarding Cosette’s A$7.40 offer. The IE opines that the offer is fair and reasonable within its A$6.61-A$7.99 valuation range.
- The high spread reflects concerns that recent events would trigger the MAC clause. Thankfully, the scheme booklet does not indicate that Cosette is contesting it.
- Recent events should help quell retail opposition to the offer. At the last close and for a 2 July payment, the gross/annualised spread is 19.4%/262%.
Mayne Pharma (MYX AU): Scheme Booklet Dispatch Lends More Than A Veneer Of Support
- After a rough week – somewhat of an understatement – the Scheme Doc is now out.
- The Court Meeting is the18th June; the last day of trading the 23rd June, and implementation 2nd July. The IE says fair with a valuation range of A$6.61-A$7.99/share.
- This IE’s valuation range doesn’t factor in the pharma EO, given its ambiguity. Nor the FDA level. However, Mayne, ASIC AND Cosette have effectively signed off on the Doc’s veracity.
BHP: Last Strong Driver (Copper) Turns Volatile
- A volatile metal price has boosted the risk for BHP’s remaining strong major segment, copper, while the other two key divisions, iron ore and coal, are still sluggish
- We forecast a weaker 2025E-2026E than consensus, given the risk that global demand disappoints and continues to pressure metal prices for BHP’s three key segments
- Our conservative valuation puts BHP near fair value, and while the P/B of 2.4x is only moderately elevated versus recent history, we see the risks weighted to the downside
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