Shareholders enjoy handsome takeover bids Lex Hall | 24 May 2021Text size
Shareholders in several ASX companies have enjoyed handsome takeover bids, with this month’s bid for Crown Resorts the latest to be launched following a strong start to the year.
Asset managers say other takeover bids are likely, with private equity’s huge stores of cash and the low cost of borrowing making bids easier as companies seek growth by joining with others.
Private-equity firm Blackstone and casino operator Star Entertainment Group (ASX: SGR) have both bid for gaming group Crown Resorts (ASX: CWN). Morningstar analyst Angus Hewitt says another bid for narrow-moat Crown is likely after the company rejected Blackstone s revised bid of $12.35 cash per share. Morningstar’s fair value estimate remains unchanged at $12.14, compared to its current price around $12.90, up from around $10 before Blackstone’s first bid in March.
Vocus has posted strong financials in H1 FY2021 to complete its three-year turnaround plan ahead of schedule, crediting wins from enterprise and wholesale customers.
In the half year ended 31 December 2020, the telco reported revenue of $897.4 million, down 0.5 percent year over year from $901.9 million. EBITDA is up 3.8 percent year over year to $188.1 million, while net profit after tax is up 49 percent to $19.1 million.
The strongest segment for the period was Vocus Network Services, the company’s enterprise and wholesale business, which had 8 percent EBITDA growth and an 11 percent increase in recurring revenue.
In addition to government and enterprise, international customers and sales on the Australia-Singapore Cable also contributed to the growth.