Cerebos Pacific delisting: A cash cow being taken away

August 1, 2012 at 7:49 pm Leave a comment

Cerebos Pacific (a stock which i own) is going to be delisted by its parent, Suntory at $6.60 per share. Although there is a EGM for the delisting proposal, with Suntory holding about 83% of the shares, the delisting offer is 99% certain unless minority shareholders like me turn up in force to reject the delisting offer.

Cerebos Pacific pays 25cents/share as dividend for quite a number of years and its earnings per share is on a gradual upward trend with Brands business contributing the most to this upward trend due to its domination of the essence of chicken market, especially in Thailand. The delisting price of 10X EV/Ebitda compared to the 17X EV/Ebitda offered by Heineken for APB is lower than my expectation for such a fine business with lots of cash flow and not much capex.

SGX is losing another great company and it will be difficult to find another company as good as Cerebos Pacific to invest in SGX.


Entry filed under: Investing. Tags: .

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