(MENAFN- ProactiveInvestors) Takeovers lift any investment portfolio and broker Peek Hunt has listed nine small to mid-caps that it suggests may be under new ownership in a year’s time.
Oil features heavily even though it’s been a tough few months in the sector but the broker sees consolidation ahead as a result of the crude price tumble.
Petroceltic’s () appearance on the list won’t surprise many as it received an approach in October from larger rival ().
The weak oil price ultimately prompted Dragon to drop its 230p per share offer but it highlighted the appeal of Petroceltic’s portfolio and when conditions improve another bid may come along Peel Hunt believes.
() is another oil and gas group under threat due to an undemanding valuation and a portfolio that could be attractive to a larger Middle East/North African player.
Underpinned by solid oil production in Egypt and highly economic gas production in Morocco 30p is the broker’s target price.
() is a North Sea focused group and is set to double production in 2015 as the Greater Stella development comes on stream.
This production profile de-leveraging potential US$1.3bn tax loss pool and 50% discount to estimated asset value makes an attractive combination for Peel Hunt.
() is the only miner on the list and also the only house stock.
Interest is growing as the Yaoure gold project in Cote d’Ivoire moves towards the pre-feasibility study likely to be released in March.
“It is rare that a project of this quality is in the hands of a junior mining company and so it is surprising that Amara is trading on such a deep discount to our 32p risked asset value” said Peel Hunt.
Away from resources fund manager Ashcourt Rowan (LON:ARP target 234p) is improving its performance while takeover activity in the sector is also starting to pick up.
The shares trade at around 1.2% of assets under management – an attractive valuation that could ultimately attract potential suitors.
Underwriter Lancashire () comes onto the radar following XL’s bid for rival Catlin which Peel Hunt believes will get the large players thinking now may be the opportune moment for consolidation.
Lancashire with a market capitalisation of £1bn offers any potential acquirer a diverse book of business with exposure to property energy marine and aviation.
A trio of takeover stalwarts also make the list. Broadcaster () food group () and services office specialist Regus () are routinely suggested as takeover candidates and Peel Hunt sees potential for all three to change hands in 2015.
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