1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Key points:
Competitive bidding emerging for oOh!media (ASX:OML) in the private equity “sweet spot”Atlas Arteria (ASX:ALX) resisting IFM’s low-premium offer while the Takeovers Panel keeps the process on trackLoyal Metals (ASX:LLM) takeover viewed as offering strong risk-adjusted returns for arbitrage investors
Nic Sproats from Harvest Lane Asset Management outlines an active Australian M&A landscape, highlighting fresh interest in outdoor advertising group oOh!media (ASX:OML). Sproats notes a new US infrastructure investor has marginally outbid the existing private equity bidder, lifting the proposal from $1.40 to $1.45 per share. He views the $700–800 million market capitalisation as a “sweet spot” for private equity and strategic buyers, and points to strong long-only shareholders who appear open to an exit via a competitive takeover process.
Sproats also points to Atlas Arteria (ASX:ALX), where IFM’s bid faces ongoing resistance from the target. He stresses that Atlas is using every defence available because it regards the current offer, at only about a 10% premium, as inadequate for shareholders. In his view, the Takeovers Panel continues to play a constructive role by allowing IFM’s bidder’s statement to proceed while maintaining market integrity.
In resources, Sproats highlights Loyal Metals (ASX:LLM), subject to a circa $79 million cash offer from an Indonesian buyer, and says the Foreign Investment Review Board risk appears manageable. He adds that Harvest Lane holds about 17% of the company and sees attractive annualised returns at current pricing.
