DEVINE BUYER 'MAY PAY $1.20 A SHARE'

Written on the 18 July 2014 by Nick Nichols

DEVINE BUYER 'MAY PAY $1.20 A SHARE' DEVINE’S (ASX: DVN) shares may still have some upside as the company explores its options for a full sale of its business, according to broking house Morgans.

A research report released by the broker last month has indicated that an offer of $1.20 a share still gives a prospective purchaser room to move with Devine’s net asset backing sitting at $1.50 a share.

Devine’s shares have been trading around $1.08, rising from about 90c when major shareholder Leighton Holdings (ASX: LEI) announced on June 25 its intention to sell its 50.6 per cent stake in the Brisbane property developer.

Devine this week raised the stakes when it disclosed it had decided to put the entire company up for grabs following Leighton’s decision to sell its interest as part of a $1 billion asset sell-off.

Media reports have suggested Japan’s Daiwa House and Sekisui House, along with Australian homebuilder AV Jennings (ASX: AVJ), are among the potential bidders for the company.

Morgans has been talking up a full buyout of Devine, which is currently valued around $170 million, since early June.

“Given NTA of $1.50 per share and DVN’s relatively high cost base (although this is inflated by the low margin construction work in the business) there looks to be value for an industry participant,” says Morgans.

“Any corporate offer could potentially be (above) $1.20 per share,” it says.

Morgans says positives are Devine’s improved capital position following asset sales which should see $52 million returned to the balance sheet.

It says the negatives for a purchaser lie in its construction arm and its forward order book for apartment construction.

Devine’s workbook has been boosted in the past week following its appointment by Walker Corporation to build the $150 million Westmark Milton apartment project.

Walker Corporation Queensland general manager Peter Saba says his group will soon begin leasing the spaces to ‘select tenants’ appropriate for Milton’s current mix of upmarket shopping and dining’.


Author: Nick Nichols

Latest News

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter