AUB Group's (ASX:AUB) termination of talks with a consortium comprising EQT AB and CVC Asia Pacific regarding a takeover proposal is a disappointment to shareholders, but prospects for a merger and acquisition remain elevated, according to a Monday note by Jarden Research.
The proposal to acquire the company's shares by way of a scheme of arrangement for AU$45 per share was not fully priced in by the market as AUB closed lower at AU$37.76 on Nov. 28, Jarden said.
The share price reaction is a short-term "reset" in market expectations, not a change in fundamentals, Jarden added.
The company has only completed one Australia and New Zealand-listed acquisition in four attempts since 2019.
On Monday, the company reaffirmed its fiscal 2026 net profit after tax guidance in the range of AU$215 million to AU$227 million, Jarden noted.
AUB also said earlier that it sees "significant" opportunities to grow profits in fiscal 2027 and beyond.
Jarden maintained AUB's overweight rating but lowered its price target to AU$37.80 from AU$40.20.
Shares of the company rose 2% in recent Tuesday trade.
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