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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Homeserve takeover looks a done deal but there is a chance of a counterbid

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Home repair services group Homeserve (HSV) has accepted a £12offer from Brookfield Asset Management. With a slight chance of another institution making a counterbid for the group, we still think it is worth sitting tight and waiting for the situation to play out, with the shares trading a smidge below the Brookfield bid.
This represents a more than 70% uplift to the 675p level at which Shares recommended buying.
The deal makes sense for both parties involved. Homeserve is a non-cyclical business with recurring and reliable profit streams and cash flows; with high teens operating margins (17%) and returns (18%), and a significant ability to deploy capital into existing and future growth ventures.
For Brookfield there are material synergies on offer with the fund’s utility assets, likely with in-house policy books which could be merged with HomeServe.
There are additional potential synergies with a Homeserve lookalike, Enercare, which Brookfield acquired for $4.3 billion in 2018.
Tommy Breen, chairman of Homeserve, said: ‘The offer from Brookfield recognises the quality of our business, our people and our future growth potential, and allows shareholders to realise their investment at an attractive valuation.’
SHARES SAYS: This looks a done deal but worth waiting to find out.
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