Takeover activity has been heating up in the Australian market, despite the goings on in Greece and China.
The latest activity was an unsolicited bid by Pulse Health for Vision Eye Institute, which we’d like to point out, is on the list of takeover targets that Tony Featherstone puts together for the Switzer Super Report.
The bid from Pulse of 1.60 fully paid ordinary shares in Pulse for every share in Vision valued the company at $162 million at the time of the offer early this week. Vision is yet to release a target statement, but there could be more activity around this bid.
As the table below shows, Reva Medical has been the biggest contributor to our takeover target portfolio’s overall return but iiNet, also subject to takeover offers, Nearmap and Onthehouse holdings have been big contributors as well.
“I thought Reva had great prospects when it listed in December 2010 through an IPO but I am always wary of valuations of offshore technology companies that choose to list on ASX rather than US exchanges. Reva has interesting heart-stent technology and must look interesting to a bigger US player that could do more with its technology,” Tony said in February.
Tony will be updating the takeover potential list next week and as the table below shows, it is still outperforming the index despite a few laggards like Ensogo and Santos.
[1]* Performance to 9 July 2015
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