In today’s briefing:
- Brickworks (BKW AU)/Soul Patts (SOL AU): An Attractive Merger to Unwind the Cross-Shareholding
- Amaero International Ltd – New EBITDA guidance in-line with RaaS forecasts
Brickworks (BKW AU)/Soul Patts (SOL AU): An Attractive Merger to Unwind the Cross-Shareholding
- Brickworks Ltd (BKW AU) entered a combination deed with Washington H. Soul Pattinson and Co. Ltd (SOL AU). A newly-capitalised ASX-listed company (TopCo) will merge Brickworks and Soul Patts.
- The scheme vote is low risk as both Brickworks and Soul Patts shareholders will support the merger, which provides an elegant solution to unwind the cross-shareholdings.
- Investor support for the transaction seems strong, as evidenced by the A$550 million commitments for TopCo at a stingy NIL discount to the SOL last close price.
Amaero International Ltd – New EBITDA guidance in-line with RaaS forecasts
- Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
- In an ASX release on May 28, the company pushed out its guidance for when it will be EBITDA positive from FY26 to FY27, citing that the extended Continuing Resolution (CR) for the FY25 Congressional US budget and the Department of Defense programmes had contributed to the delay in revenue and new contracts.
- The CR has paused “new starts” and “re-starts”, delaying expenditure.
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