Australia's Invocare to no longer trade on company fundamentals - Morgan Stanley

InvoCare

09/03/2023 02:14

** Australia's Invocare  IVC.AX  on Tuesday announced the
receipt of A$1.81 bln ($1.19 bln) buyout offer from U.S.
private-equity firm TPG Global
    ** The indicative offer price of A$12.65 per share was at a
premium of 41%
    ** Analysts at Morgan Stanley say the premium was
significant as compared with the last close, but small relative
to where the stock has traded over the past 12-18 months
    ** We feel IVC has scope to fast-track transformation,
undertake cost out and increase financial leverage - brokerage
    ** Says IVC is unlikely to trade to fundamentals and will
now trade on buyout terms and probabilities; maintains
'equal-weight' rating
    ** Stock up 9.4% this year, as of last close 

     ($1 = 1.5191 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))