OPC – Morgans rates the stock as Hold

Aware Super (formerly named First State Super) has made a formal off-market takeover offer for OptiComm at $6.50 per share (including a10cps fully franked dividend). The offer is 100% cash and is at an 8.2% premium to the implied value of Uniti Group’s ((UWL)) offer.

The offer from Aware Super is subject to a 50.1% minimum acceptance condition. Additionally, there are customary conditions including there being no material adverse change, prescribed occurrence or regulated event affecting OptiComm.

Morgans advises shareholders the short-term price outlook is all about whether, or not, a higher takeover offer eventuates.

The Hold rating is unchanged and the target price is increased to $6.50 from $5.85.

Sector: Telecommunication Services.

Target price is $6.50.Current Price is $6.52. Difference: ($0.02) – (brackets indicate current price is over target). If OPC meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

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