Avior Capital Markets - AECI Ltd. (AECIF) AECI | Ready, steady, acquire, go?

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Avior Capital Markets

Steph Erasmus

AECI | Ready, steady, acquire, go?

AECI has struggled to deploy capital over the past five years, evidenced by special dividends and share buybacks. However; AECI deployed R3.9bn on two strategic acquisitions after the reporting date. The two acquisitions diversify AECI's product and geographical footprint. The new acquisitions will be earnings accretive for AECI. However, we are concerned that management may have overpaid. Management must ensure that margins are maintained if the acquisitions are to be accretive.

20/02/2018 23 EN

Underlying

AECI Ltd.

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Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Steph Erasmus

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AECI | Ready, steady, acquire, go?

AECI | An explosive performance

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

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