Benchmark Holdings Plc (Buy, TP: NOK6.30) - Genetics divestment approaching
Benchmark Holdings’ sale of its Genetics business to Novo Holdings announced in November 2024 is guided to close in calendar Q1 2025. The initial consideration of GBP230m (plus GBP30m in potential earnout) is set to be used to pay down debt and excess capital returned to shareholders. We have adjusted our estimates after the Q1 results, as Benchmark Holdings will retain more short-term corporate costs than previously expected. We reiterate our BUY but have cut our target price to NOK6.3 (7.2).Benchmark Holdings is principally engaged in the provision of technical services, products and knowledge that support the development of sustainable food and farming industries. Co.'s reportable segments include: Animal Health Division, which provides veterinary services, environmental services diagnostics and animal health products to aquaculture, and manufactures licenced veterinary vaccines and vaccine components; Genetics Division, which harnesses salmon breeding technologies combined with production facilities to provide a range of high genetic merit ova; and Advanced Animal Nutrition, which manufactures and provides nutrition and health products to the aquaculture industry.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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