Q: What do the think are the odds of NFI being taken over, and if so what price might be attractive to a buyer??
5i Research Answer:
Control is in the market, though Colisuem Capital owns 19% and any deal would have to make them happy. But considering NFI could likely grow much faster if it had a better balance sheet or a large parent, we think it is a viable takeover candidate. Shares are down 33% in the past 10 years. We would put odds at 20% to 30%. Such odds are usually much lower as many things need to combine simulataneously for a successful takeover.