Navitas has received a bid at $5.50 a share from a private equity-led consortium. Macquarie considers the transaction multiple to be fair. The proposal remains subject to further review.
The proposal removes uncertainties regarding the incremental investment that is required to optimise the portfolio and would enable the realisation of value at levels consistent with the broker’s expectations.
Macquarie downgrades to Neutral from Outperform, reflecting the move in the share price and the low probability of a competing bid. Target is raised to $5.50 from $4.80.
Sector: Consumer Services.
Target price is $5.50.Current Price is $5.27. Difference: $0.23 – (brackets indicate current price is over target). If NVT meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).