The big news last week was, of course, the TPG takeover bid for iiNet for $1.4 billion. The iiNet Board is all for it, and although the Australian Consumer and Competition Commission has said it is keeping an eye on the bid, it will probably get through.
That’s great news for anyone who has been following our takeover targets portfolio. iiNet has been on Tony Featherstone’s watch list since last April when he first put together 12 companies that were ripe to be picked up, but which also offered investors good value.
iiNet
Yahoo!7 Finance, 16 March 2015
Back then Tony said that iiNet was an impressive company that investors should be happy to own, regardless of a takeover. “iiNet has excellent growth prospects, and a suitor would have to pay up for a business of its quality.”
“With founder and long-time CEO Michael Malone stepping down, the path looks clearer for a predator – my money is on TPG Telecom – to move in,” he said then.
If you’re looking for more takeover potentials you could always consider the two oil stocks that Tony added to his list in February – Santos and AWE. Tony said that small energy stocks are ripe for consolidation.
“AWE looks a lower-risk play than other mid-tier energy producers and explorers. With a reasonably open share register, it could attract interest from a larger energy company that believes the time is right to pounce on an undervalued, quality mid-tier player,” he said.
To recap the portfolio includes: NIB Holdings, iiNet, Reckon, Automotive Holdings Group, Monash IVF Group, Vision Eye Institute, Australian Agricultural Company, Reva Medical, Ten Network Holdings, Nearmap, iSelect, OnTheHouse Holdings, OxForex Group and Ensogo (formally iBuy Group).
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