reports
Flash note: Proposed sale of all operating businesses
Balda has announced the proposed sale of its entire operating business for a net purchase price of €62.9m to Munich-based private equity company Paragon. The deal would leave Balda with a shell containing c €130m in cash. The agreement is subject to an approval by 75% majority at the AGM on 19 November, which will also decide on special dividends of €0.90 per share (independent of the sale) and €1.10 per share (dependent on the sale). Our forecasts and valuation are suspended pending the...
Update: Strong growth acceleration in Q3
Balda’s growth acceleration in Q3 to 33% was driven by higher volumes to established customers and a 12% FX boost. Also, its Q3 EBITDA margin rose 3ppt to a new high of 11% on a recurring basis. The tail-end of Balda’s restructuring may result in further charges (€2.4m in Q3), but revenue growth looks likely to surprise on the upside. Using DCF, we value Balda at €221m/€3.76 per share, of which financial reserves comprises 87%.
Initiation: Rich on cash and growth prospects
Balda is a leading international supplier of moulded plastic solutions to manufacturers of medical and technical products, counting key industry leaders as its main clients. Its buy-and-build strategy targeting advanced medical plastics is supported by its vast cash resources resulting from the sale of its mobile telephony assets in 2012. Using DCF, we value Balda at €221m/€3.76 per share, of which financial reserves comprises 87%.
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