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CapVest’s €2.50 per share takeover offer for plastics group One51 undervalues the company according to Davy stockbrokers.
In a note to investors, Davy said the takeover offer of €2.50 per share made last week by private equity firm CapVest puts a market value of 8.5 to nine times earnings (EBITDA) on One51.
Davy said that this offer undervalues the company as One51 “good earnings upside potential” over the next year or so.
Davy undertook an analysis of peer companies in the plastics market, which suggested a value in excess of 9.5 times earnings for One51 is more appropriate.
This means shares in One51 could be valued between €2.65 and €2.80 based on a 9.5 times multiple.
Davy’s investor note will be welcome news for Irish co-ops that hold a collective 27% stake in One51, including Glanbia, Kerry, Lakeland and Dairygold.
Were shares in One51 valued as high as €2.80, the collective stake held by Irish co-ops would be valued at close to €120m.
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