Q: ISC catching a bid today after announcing a strategic review, based on it still appearing relatively cheap and a theoretical exercise only, what would be a reasonable potential takeout price?
5i Research Answer:
A review of course does not always result in a sale. But ISC offers solid and stable cash flow, and with a big public dividend there can be an incentive to privatize and thus buyers get to keep the dividend now paid to the public. The stock is at a multi-year high today. A control premium we think would imply a $40 takeout price, approx.