Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Monday, 20 October 2014

Transfield receives $1 billion acquisition proposal

One of our favourite companies in 2014, Transfield Services (TSE), has received a $1 billion non-binding proposal at $1.95 per share from Spanish infrastructure group Ferrovial.

I identified infrastructure services as a sector of interest this year and Transfield in particular as previously discussed here

TSE has not accepted the offer of acquisition, recommending no action for shareholders, believing that it can hold out for a bid which better reflects the underlying value of the company.

Ferrovial has, however, been given limited access to perform due diligence, and the market settled on a closing share price today of $1.90 (up 26 percent during the trade), having previously hit a new high for the year of $1.97 (click chart to expand):


The closing share price puts the TSE market cap at around $974 million and the TSE share price has more than doubled from where it started the 2014 calendar year.

Last month, TSE reported a successful turnaround story on its prior year result by recording a net profit of $53 million for the full year, having booked very significant losses of more than $250 million for the prior year comparative period. 

Disclaimer: This is not a share tip or recommendation. Always seek professional advice before making investments.