Caltex has received a conditional proposal from Alimentation Couche-Tard. The proposal permits Caltex to pay a special dividend, neutralising the attractiveness of alternative strategies further distributing franking credits, Credit Suisse observes.
The broker suspects the probability of a transaction rests primarily with the willingness of Caltex to engage. The proposal is at $34.50 a share and values Caltex at $10.8bn. Neutral rating maintained. Target rises to $34.50 from $28.11.
Sector: Energy.
Target price is $34.50.Current Price is $33.94. Difference: $0.56 – (brackets indicate current price is over target). If CTX meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
