Market's view on Accrol Gp
Published on April 2024
- There is anticipation of a court meeting and general meeting on 15 May 2024 concerning a potential sale of the company.
- Last year’s trading update mentioned that the company is expected to perform well in FY24 and even better in FY25 due to acquiring Severn Delta Limited.
- Metsä has planned to develop a tissue paper mill in Goole with a capacity for 240,000 tons, indicating long-term growth in production capacity.
- Concerns are expressed regarding the management potentially not facing up to challenges, with a sentiment that they might just take the money and exit.
- Supply dynamics in the UK tissue market are expected to become more competitive due to investments from European and Turkish companies, which could disrupt market stability.
- Doubts are raised about achieving a 75% acceptance for the takeover offer, speculating that investors who bought at higher prices would demand a better return.
- Observations indicate that supermarket and discounter price reductions for toilet paper could suggest competitive pressures or lower prices paid to the company.
- There is a belief that the company is undervalued, with potential for higher offers if competitive bidding occurs.
- Concerns are raised about the potential for a market downturn if the current acquisition offer is not successful.
- Pulp prices have decreased by 30%, which could significantly boost the company’s profits, leading some to believe the stock is worth between 45 and 50 euros.