logo-loader
viewSigmaRoc

SigmaRoc’s CDH acquisition offers chance to build “national Belgian business”

Analysts at Liberum said the €81.3mln purchase will boost EPS by 20% and provide opportunities to lift EBITDA by over 30%

SigmaRoc - SigmaRoc’s CDH acquisition offers chance to build “national Belgian business”
CDH is Europe’s largest bluestone and limestone quarry

SigmaRoc’s acquisition of CDH Développement SA, Europe’s largest bluestone and limestone quarry, offers the company a chance to build a “national Belgian business”, according to analysts at its house broker Liberum.

In a note increasing the construction materials group’s target price to 65p from 63p, analysts said the €81.3mln purchase will boost earnings per share (EPS) by 20% as well as opportunities to lift earnings (EBITDA) by over 30%.

READ: SigmaRoc proposes acquisition of Europe’s largest bluestone and limestone quarry

SigmaRoc plans to raise £32.8mln through a placing of new shares at 41p, which will be used to pay the first instalment of the transaction and the remainder “for future investment opportunities and general working capital”.

The second and third instalments, set at €2mln and €14mln, will be settled within two years after the initial payment.

With these forecasts in mind, Liberum said the firm’s shares “look cheap” at their current levels, which in mid-morning trading on Tuesday was 45.4p, a 30% discount to their new target price.

Quick facts: SigmaRoc

Price: 50.75 GBX

AIM:SRC
Market: AIM
Market Cap: £128.77 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of SigmaRoc named herein, including the promotion by the Company of SigmaRoc in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

SigmaRoc acquires Belgian sea defence rock quarrying firm Stone Holdings

SigmaRoc PLC's (LON:SRC) Max Vermorken speaks to Proactive London after announcing they've agreed to buy Belgian sea defence rock quarrying firm Stone Holdings in a deal valued at €2.2mln including debt. They're buying the company from shareholders Christophe de Limburg Stirum and Jacques...

on 11/9/19

2 min read