Morningstar | Dulux FVE Reduced After Paying Dividends; We Still Recommend Voting in Favour of Nippon’s Proposal
With previously announced interim and special dividends totaling AUD 0.43 per share now in the hands of shareholders, we reduce our fair value estimate for narrow-moat Dulux by the same amount to AUD 9.37 per share. Nippon Paint’s AUD 9.80 per share offer for Dulux is inclusive of these now paid dividends. This leaves AUD 9.37 per share in cash to be received by Dulux shareholders should the deal be approved in late July. With antitrust clearances in Australia and New Zealand now obtained, Dulux shareholder approval remains the only impediment to deal closure. We continue to recommend shareholders vote in favour of the scheme of arrangement and remain of the view that deal closure is highly probable given Nippon’s generous all-cash offer. Dulux shares are approximately fairly valued, last trading at AUD 9.34 per share.DuluxGroup is engaged in the manufacture, marketing, manufacture, marketing, sale and distribution of branded paint, coatings, adhesives, garden care and other building products to the residential home improvement, commercial and infrastructure markets across Australia, New Zealand and Papua New Guinea, China, South East Asia and the U.K. Co. supplies paints and coatings under the Dulux brand; consumer and construction products under the Selleys and Parchem brands; cabinet and architectural hardware under the Blum, Hera, SecureView, Assa Abloy and Breezway brands; and Yates garden care and home improvement products.
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