Our opinion on the current state of BELL(BEL)
Bell (BEL) is a manufacturer and distributor of heavy and earth-moving equipment to the mining, construction, agriculture, and waste management industries. The company has been directly impacted by the slowdown in construction since 2008 and the collapse of the mining industry. Bell's articulated dump trucks are exported worldwide from South Africa and Germany. Bell also has dealerships for several other global manufacturers, giving it a product range of over 120 products. Roughly 60% of its business comes from outside South Africa. The company employs 3200 people, of whom 88,6% are in South Africa.
The CEO of Bell, Gary Bell, has indicated to Business Day that the company would consider delisting, with 1A Bell making an offer to minorities (but he did not disclose at what price). Some minority shareholders are now saying that the board has a fiduciary duty to put the company up for sale to the highest bidder. On 18th February 2021, the company announced that a deal had been struck for 1A Bell to buy a further 31,4% of Bell, giving it a 70% stake at R10 per share - a 13% discount to the share price.
In its results for the year to 31st December 2023, the company reported revenue up 32% and headline earnings per share (HEPS) up 69%. The company's net asset value (NAV) increased 21% to 5527c per share. The share trades over R1m worth of shares on average each day, making it suitable for a private investor. There was an on-balance-volume (OBV) buy signal on 7th September 2023 at 1752c per share. Since then, the share has moved up to 2480c.
On 15th July 2024, the company announced that the Bell family had made a firm offer to buy out the 30% of Bell which it did not own at R53 per share - which is an 82,3% premium to the 30-day volume weighted average price (VWAP) of the price of 11th July 2024 (3100c). The share will be delisted once the transaction is completed.
This move to delist at a substantial premium indicates confidence from the Bell family in the company's future prospects. For current investors, this offer represents a significant return on their investment, and for potential investors, it highlights the importance of monitoring company buyout offers for opportunities.
The CEO of Bell, Gary Bell, has indicated to Business Day that the company would consider delisting, with 1A Bell making an offer to minorities (but he did not disclose at what price). Some minority shareholders are now saying that the board has a fiduciary duty to put the company up for sale to the highest bidder. On 18th February 2021, the company announced that a deal had been struck for 1A Bell to buy a further 31,4% of Bell, giving it a 70% stake at R10 per share - a 13% discount to the share price.
In its results for the year to 31st December 2023, the company reported revenue up 32% and headline earnings per share (HEPS) up 69%. The company's net asset value (NAV) increased 21% to 5527c per share. The share trades over R1m worth of shares on average each day, making it suitable for a private investor. There was an on-balance-volume (OBV) buy signal on 7th September 2023 at 1752c per share. Since then, the share has moved up to 2480c.
On 15th July 2024, the company announced that the Bell family had made a firm offer to buy out the 30% of Bell which it did not own at R53 per share - which is an 82,3% premium to the 30-day volume weighted average price (VWAP) of the price of 11th July 2024 (3100c). The share will be delisted once the transaction is completed.
This move to delist at a substantial premium indicates confidence from the Bell family in the company's future prospects. For current investors, this offer represents a significant return on their investment, and for potential investors, it highlights the importance of monitoring company buyout offers for opportunities.
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