SA's small and medium companies attract foreign bargain hunters
Subdued economic growth and subsequent lack of liquidity has brought down company valuations in key sectors and investors taking a long-term view may want to take advantage of this
SA’s well-run small and medium-sized companies are set to attract international investors looking for cheap but valuable targets, say analysts. They say subdued economic growth and subsequent lack of liquidity has brought down company valuations in the country’s key sectors and that investors taking a long-term view may want to take advantage of this. Last week, MilCo a consortium of investors led by Israel-based Central Bottling Company (CBC) made a R4.8bn offer to buy Clover, shining the spotlight on the attractiveness of some of the country’s well-established but under-valued companies. MilCo consortium’s bid for Clover follows France-based waste management company Séché Environnement’s announcement in November 2018 that it had made a firm offer to buy JSE-listed Interwaste for R1.20 per share, which represents a premium of 47.9% to the 30-day volume weighted average price of the Interwaste shares on September 28 2018, the trading day immediately preceding the issue by Interwaste...
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