Q: Hi 5i Team - Is NVEI worth holding on to in case of a higher price or is it best to sell and use the money somewhere else. When does the takeover happen. If I sell are there a couple of replacement stocks you think would work for a three to five year hold.
Thanks.
Thanks.
5i Research Answer:
We would not put too much faith in a higher price coming to the table, although it is still a possibility. The takeover is expected to happen in, 'late 2024 or early 2025.' At current levels, there is about a 5.8% premium to be made up, so we are fine holding for the moment, but the stock could be a source of cash for other ideas as well. We do not see a lot of deal risk, and the 5.8% can be considered 'near-cash' (but not of course risk-free). Other replacements options for this timeframe could be DSG, DCBO, and GIB.A.