RE: Low-Ball Offer26 Oct 2023 09:00
Although I am not a shareholder of SCS, I have been viewing the business with content for some months. For an entity that has shown impressive management status over the years, I would think Shareholders are to believe the Board haven't realised the true benefits In which they have postioned the business. A consistently higher than average and growing return on capital, whether that be ROIC, ROCE or ROE metrics, do come at a premium sale price tag. I would assume the sale of just 30mil of net cash is not desirable for Shareholders, depending on what their own individual circumstances are. I would hazard a good set of conservative assumptions that the sale value Is far short of the fair value over the next 3,5 or even 10 years which shows a opportunity cost loss. The business trades far short of it's peers and I would think the Italians are rubbing their hands together if Shareholders agree. I would reject the offer.