InVivo's offer for Australia's United Malt 'attractive' - analysts

United Malt

28/03/2023 20:39

** Analysts at UBS and Morningstar find InVivo's offer for
United Malt Group  UMG.AX  "attractive"
    ** The commercial maltster on Monday got a near $1 bln offer
from Malteries Soufflet, a branch of French agribusiness InVivo
    ** Morningstar raises its fair value estimate for UMG to
A$4.75 from A$4.00
    ** Offer is "already well-advanced", Morningstar says,
adding it does not see the french firm to propose a higher offer
    ** "We expect the current headwinds of negative mix shift
and sharply higher input costs to be short-lived" - Morningstar
    ** Prior to the takeover proposal announcement, UMG had been
trading at a discount to its peer set - UBS
    ** Two of 6 analysts rate UMG "buy" or higher, 4 "hold";
median PT is A$4.4 – Refinitiv
    ** Stock up 29.7% so far this year, as of last close
    


 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))