Fund managers are being booked for investor meetings with Camperdown Dairy management next week, and were told that the company is seeking to raise $150 million before the end of the month and will list on the ASX before the end of the calendar year.
Camperdown Dairy is targeting $50 million in earnings before interest, tax, depreciation and amortisation in 2017.
The $150 million pre-IPO raising would value the infant formula producer at six-to-eight times forecast earnings, or $300 million to $400 million.
Camperdown Dairy is targeting $50 million in earnings before interest, tax, depreciation and amortisation in 2017.
The $150 million pre-IPO raising would value the infant formula producer at six-to-eight times forecast earnings, or $300 million to $400 million.
It’s understood Camperdown Dairy has approved infant formula blending/tinning facilities with existing 15 million tonnes a year capacity, with plans to expand.
While the capacity is all well and good, investors will want to see that Camperdown Dairy has means to sell the product, particularly in its target market of China. Some reckon it has offtake agreements supporting 30 million tonnes in annual production.
The company is being pitched as an independent alternative to the big global majors. Street Talk first flagged the deal in February.
It remains to be seen whether investors will take the bait. It’s a pitch all too familiar for fund managers who have been asked to look at a handful of infant formula and dairy hopefuls over the past 12-months – including a $250 million deal for PAC Partners, also through PAC Partners, that was eventually scrapped.
While the capacity is all well and good, investors will want to see that Camperdown Dairy has means to sell the product, particularly in its target market of China. Some reckon it has offtake agreements supporting 30 million tonnes in annual production.
The company is being pitched as an independent alternative to the big global majors. Street Talk first flagged the deal in February.
It remains to be seen whether investors will take the bait. It’s a pitch all too familiar for fund managers who have been asked to look at a handful of infant formula and dairy hopefuls over the past 12-months – including a $250 million deal for PAC Partners, also through PAC Partners, that was eventually scrapped.
Camperdown Dairy is owned by one-time coal baron Bill McDonald. Its manufacturing plant is located in Victoria’s Braeside.
Elsewhere, Wilson HTM is poised to announce the firm has lured Mason Stevens’ head of equities Michael Birch, as revealed by Street Talk on Thursday.
Staff may be told of the hire as early as Friday. Birch is understood to be starting as a director of global strategy and international investment in coming weeks, following a period of gardening leave.
Elsewhere, Wilson HTM is poised to announce the firm has lured Mason Stevens’ head of equities Michael Birch, as revealed by Street Talk on Thursday.
Staff may be told of the hire as early as Friday. Birch is understood to be starting as a director of global strategy and international investment in coming weeks, following a period of gardening leave.
Source: FinancialReview
