FNArena’s Weekly Insights – February 20 2023
In this week’s Weekly Insights:
-M&A Targets – Who’s Next?
-February: Brutal And Underwhelming, So Far
-Research To Download
By Rudi Filapek-Vandyck, Editor
M&A Targets – Who’s Next?
One of the heaviest post-bubble punishments ever for small cap growth and technology stocks, rivalling the post-Nasdaq meltdown of 2000-2003, had already triggered take-over interest from mostly foreign suitors for ASX-listed companies including Elmo Software ((ELO)), Nearmap ((NEA)), Nitro Software ((NTO)), Proptech Group ((PTG)), Pushpay Holdings ((PPH)), ReadyTech Holdings ((RDY)) and Tyro Payments ((TYR)) – and that list is guaranteed incomplete.
Outside of technology, both energy retailers AGL Energy ((AGL)) and Origin Energy ((ORG)) have seen suitors emerging, but successfully completing deals has proven more problematic.
M&A potential didn’t genuinely catch most investors’ and institutional asset managers’ attention until US-based gold producer Newmont announced it would like to re-join with its former Australian business unit, Newcrest Mining ((NCM)).
Not everybody is keen on dabbling into beaten-down, unprofitable, small-cap technology aspirants, but large cap resources, on the other hand…
With a market capitalisation of circa $21bn, Newcrest is the local heavyweight among ASX-listed gold miners with the likes of Northern Star ((NST)) on $13bn, Evolution Mining ((EVN)) on $5bn, and Perseus Mining ((PRU)) on $3bn far, far behind.
