Mainstream Group has entered into a Scheme Implementation Deed (SID) with Vistra, allowing Vistra to acquire 100% of the company’s shares for $1.20 by way of a scheme of arrangement. The board supports the scheme.
Morgans is underwhelmed by the 10% premium to the last close and sees potential for higher bids though the “matching rights” given to Vistra under the “go shop” proposal could deter other bidders.
The broker lowers the target price to the current bid price of $1.20 from $1.22 and retains the Add rating.
Sector: Diversified Financials.
Target price is $1.20.Current Price is $1.22. Difference: ($0.02) – (brackets indicate current price is over target). If MAI meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
