Vocus Communications has received a confidential, non-binding, indicative proposal from Macquarie Infrastructure and Real Asset Holdings (MIRA) to acquire 100% of the company at $5.50 per share.
Due diligence has been granted to enable MIRA to potentially put forward a binding proposal. Morgans notes in the last few years there has been three quasi bids for the company and none of these became firm offers.
Morgans retains a Hold rating and increases the target price to $5.50 from $3.35.
Sector: Telecommunication Services.
Target price is $5.50.Current Price is $4.94. Difference: $0.56 – (brackets indicate current price is over target). If VOC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
