Tate & Lyle (TATE.L), mcap=£3.4bn, price £7.4 vs £7.4

Pitch: European specialty food ingredients company that has partially disposed one segment and intends to distribute cash to shareholders (c. 12% of market cap). The refocused remaining business is less cyclical and benefits from trends of healthy eating and focus on non-meat products, positioning the company as a takeover candidate. Freed up capital will provide flexibility to invest in operational revamp as well as take advantage of inorganic /organic growth opportunities.

Valuation: TATE.L trades around 17xPE for 2023 with peers at 25x.

Exp. gain: 40% upside to the valuation of key competitors and 50%+ upside in an acquisition scenario.

Full TATE.L write-up (free guest account required):

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