Olam: Updates on fund raising, lower TP due to dilution. Goldman maintains Neutral with TP unchanged. IIFL downgrades Olam to Add but is still positive with TP slashed from $3.87 to $3.17. RBS maintains Buy but lowers TP to $3.80 from $4.05. Views are generally positive in the long-run due to expected further acquisitions…
However, concerns highlighted are long gestation periods for further greenfield invt (such as Gabon urea project by 2014), high placement disc approx 9.8% compared to Noble’s 5% disc in March and unequal treatment of investors due to Temasek receiving greater disc...
The new offering was 6x over-subscribed with a total of $740m raised. With its recent US$1.25b facility, co has approx $2.3b available for new acquisitions.
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