The company has entered the scheme of arrangement with one of China’s dairy product manufacturers, China Mengniu Dairy.
Morgans considers the timing of the offer of $13.25 a share opportunistic and notes it remains subject to a number of conditions, namely court, FIRB and shareholder approvals.
Shareholders are expected to receive a cash consideration of $13.25, consisting of $12.65 cash from Mengniu Dairy and a $0.60 fully franked special dividend. Mengniu Dairy currently owns 2.9% of the company.
Morgans retains a Hold rating and raises the target to the offer price of $13.25, from $7.65.
Sector: Food, Beverage & Tobacco.
Target price is $13.25.Current Price is $12.82. Difference: $0.43 – (brackets indicate current price is over target). If BAL meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
