TSX:CUS.DB.D - Post by User
Comment by
rustybladeson Nov 09, 2015 9:31am
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Post# 24272751
RE:Td report this morning, $1.60 target
RE:Td report this morning, $1.60 target chiefie wrote:
TD Investment Conclusion We view the acquisition of Canexus by Superior Plus as a positive for Canexus shareholders, who are able to obtain a significant premium to the shares' recent trading range and to our view of fair value of the company. We believe that shareholders would be well-served to vote in favour of the transaction.
The TD report also states
"While we believe that the agreement with Superior Plus will gain both shareholder and regulatory approval, if the transaction does not close we believe that there are other interested parties (both strategic and financial) that would be interested in acquiring the company." The section on comparable companies shows that SPB has the lowest EBITDA margin in a group of eight (not including CUS). SPB margin is 8.0%, group average is 18.8%. The margin of the company next lowest to SPB's 8.0% is 18.8% and Canexus's is 20.5%.
There is also a section on forecast numbers if the deal does not go through. This section shows EBITDA for 2016 of $117 million.