Analyst Note| Nathan Zaia |
AUB Group’s planned acquisition of Tysers did not get a positive reception from the market. Many Australian businesses have fumbled on overseas forays, buying assets from private equity vendors have left many investors burnt, and we acknowledge the integration risks. But there is more than an adequate margin of safety in the current share price. AUB Group now trades at a 33% discount to our unchanged AUD 28 fair value estimate.