Author Topic: TESB.BR - Tessenderlo Group  (Read 77622 times)



skanjete

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Re: TESB.BR - Tessenderlo Group
« Reply #171 on: August 26, 2019, 02:51:24 AM »
Look at free cash flow! And this without any working capital bonus...

Also, it strikes me again how they present results in a way that downplays their progress.

kab60

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Re: TESB.BR - Tessenderlo Group
« Reply #172 on: August 26, 2019, 10:06:20 AM »
Look at free cash flow! And this without any working capital bonus...

Also, it strikes me again how they present results in a way that downplays their progress.
In what way do you feel they're downplaying the results (taking the power plant somewhat out of the equation)? I agree results look strong, espescially impressive compared to results of other chemical companies atm, but I feel like it's difficult to get a grasp for where they're going (guides to increased earnings...). Do you feel you have a good idea for what'll drive earnings in the coming years or is it a matter of high uncertainty, low risk (follow Tackes money?)? (probably a combination?).

Libs

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Re: TESB.BR - Tessenderlo Group
« Reply #173 on: March 31, 2020, 09:59:15 AM »
Market cap 1.1B, FCF 145MM = 7.5X.

From their annual report, released 3/26.

Note how essential their markets are. Revenue should hold up well.

This stock is a bargain.
------------------------------------------------------------------------------

In light of the latest developments concerning the global spread of the COVID-19 (Coronavirus) disease,
Tessenderlo Group is taking all the necessary steps to ensure that it keeps its people safe and keep its plants
and businesses running. This is because the group provides support for vital services and the flow of crucial
goods. Tessenderlo Group supplies the basic chemicals for the production of drinking water based on side
streams in the form of hydrochloric acid from the production of sulfate of potash (SOP). In addition, the
group produces gelatin for medical and food applications, crop nutrition and crop protection products for
agriculture (for which the season is just starting in the northern hemisphere), and plastic pipe systems for
maintaining drinking water supply systems and polluted water evacuation, while Akiolis protects the meat
chain (in France).
 All of the plants and activities are running in line with expectations at the moment, except for the current
disruption of production at DYKA Group’s French plant in Sainte-Austreberthe (segment Industrial Solutions).
In February 2020, the COVID-19 disease also disrupted production at the Chinese plant in Nehe (PB Leiner –
segment Bio-valorization), which restarted production in early March. Based on current information, the
impact of these events on the financial results is expected to be limited.
 Activities could be further impacted in the coming weeks or months if too many employees are impacted by
COVID-19 and/or if access to raw materials and auxiliary materials or means of transportation becomes more
complicated, or if our customers are no longer able to process our products
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A Dhandho Investor

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Re: TESB.BR - Tessenderlo Group
« Reply #174 on: April 01, 2020, 12:11:44 AM »
Luc Tack also bought an additional 400k shares on Monday at an average price of 24,50€ via his own investment vehicle (Symphony mills)

Libs

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Re: TESB.BR - Tessenderlo Group
« Reply #175 on: April 01, 2020, 08:01:40 AM »
I've put my bid at 22.50........
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matts

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Re: TESB.BR - Tessenderlo Group
« Reply #176 on: April 01, 2020, 11:58:28 AM »
I remember reading about this company when it first popped up here. There was some misalignment of interest between the 2 Luc Tuck vehicles? How's the capital allocation been at TESB last couple of years? Has Tuck made good decisions and treated minority shareholders well?


skanjete

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Re: TESB.BR - Tessenderlo Group
« Reply #177 on: April 02, 2020, 12:21:48 AM »
In my opinion, capital allocation has been great.

But it was a great mistake of minority shareholders (thank you, Meryl Witmer...) to block the merger between Picanol and Tessenderlo.

Picanol is the better business in my opinion and since the merger blocked, Tack has been buying out minority shareholders of Tessenderlo at a steady pace. Because of the blocked merger the interest of Tack and minority shareholders were not aligned anymore. His interest is in a low share price so he can buy minorities out at a discount with the cash flow from Picanol.


Apart from this, the company itself is doing really fine. Look at EBITDA and free cash flow generation over the past few years. The question to be answered is if minority shareholders will benefit proportionally.

Libs

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Re: TESB.BR - Tessenderlo Group
« Reply #178 on: April 02, 2020, 07:15:08 AM »
In my opinion, capital allocation has been great.

But it was a great mistake of minority shareholders (thank you, Meryl Witmer...) to block the merger between Picanol and Tessenderlo.

Picanol is the better business in my opinion and since the merger blocked, Tack has been buying out minority shareholders of Tessenderlo at a steady pace. Because of the blocked merger the interest of Tack and minority shareholders were not aligned anymore. His interest is in a low share price so he can buy minorities out at a discount with the cash flow from Picanol.


Apart from this, the company itself is doing really fine. Look at EBITDA and free cash flow generation over the past few years. The question to be answered is if minority shareholders will benefit proportionally.

Skanjete

Can you flesh this out a little - at what % of Teck's Tessenderlo ownership would the minority shareholders be at risk, in your view, and how could it play out? Thanks.
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skanjete

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Re: TESB.BR - Tessenderlo Group
« Reply #179 on: April 02, 2020, 08:21:08 AM »
Well, Tack already has absolute power. He owns/controls about 50% of the shares, but considerably more of the votes (about 60% I guess) because of the loyalty program.

So he can pretty much do as he likes. If you don't like the situation with Tessenderlo, you can always look to own Picanol. With Picanol, the minority interest are more aligned with the interest of Tack, because he wants to keep a stock market presence. However, the shares are hard to get and very illiquid.

Actually, it's possible he tries to merge again in a stock deal. A few weeks ago, there was a special meeting at Picanol to enact the loyalty votes. Tack really doesn't need it, because he already owns 90% of the shares, but if they ever want to merge with another company in a stock deal, the loyalty votes could make sense. Long term that would be the best solution for all parties involved.