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SIQ - SMARTGROUP CORPORATION LTD


blacksheep
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  • 1 year later...

A consortium led by TPG Global has lobbed a $1.4 billion offer at salary packaging and fleet management services company Smartgroup.

 

TPG Global and Potentia Capital have proposed to acquire 100 per cent of the company under which shareholders would receive $10.35 a share.

 

The offer represents a 31.7 per cent premium to the Smartgroup closing price yesterday.

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from Oct 2019 :

looking for a buyer of their entire stake - 32 mil shares - via block trade through Macquarie @ $11..30/share - wonder why? SIQ last traded @ $12.10
..... and that was about the highpoint for SIQ. It was below $7 by the end of that year with three gaps down (on news), and then Covid times saw a further sell off to just above $4.

 

 

There had been a bit of a rebound since, but the whole exercise looks like profitless growth. Probably take the leveraged approach of a PE player to wrest some $ out ... In 5 years time, when it is likely to relist, ... Note To Self: AVOID

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  • 5 months later...

Matthew Kidman: Welcome to Buy Hold Sell, brought to you by Livewire Markets. My name is Matthew Kidman, and today we’re going to wind back the clock and talk about dividends. Yes. Remember that? That is what we used to search for in companies before growth became the dominant theme.

Now it is back to dividends. And to talk about that, we have got Blake Henricks from Firetrail and Michelle Lopez from abrdn.

Matthew Kidman: It has been a bit on the nose recently, but Smartgroup, good result. People liked it. A big dividend. Buy, hold, or sell?

Blake Henricks (HOLD): It is a hold for me. It is just pretty boring. I mean, hey, the industry grows at 2 per cent to 3 per cent to 4 per cent. They are doing their thing. I mean, you look at the margins, they have not changed for five years. The EBITDA really has not changed for five years. It is what it is.

Matthew Kidman: Not bad for a half year result and you are getting an over 5 per cent yield. Smartgroup, buy, hold, or sell?

Michelle Lopez (HOLD): Well, I am with Blake on this. It is a hold. And, again, I cant get excited. It is what it is. It is on 15 times. It is paying a 6 per cent dividend yield, if that is what you are after. And to be fair, they have done a very decent job in getting through the challenges of the last couple of years of disruption of vehicle supply, and the outlook is okay. But also, in the back of my mind, I have got this regulatory risk overhang.

Matthew Kidman: Still.

Michelle Lopez: Still. So I know there is bipartisan support for the industry. However, that still lingers for me, so it is a hold.

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  • 3 months later...

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