Spotlight on Brambles
Brambles (ASX: BXB) specialises in sustainable logistics, operating the world’s largest pool of reusable pallets, crates and containers. The company announced the sale of its IFCO reusable plastic containers business for US$2.5 billion recently.
This divestment will provide a significant cash return to shareholders and allow BXB to conduct an on-market buy-back and repay debt to maintain leverage in-line with the Board-approved credit policy. BXB will pay 29 cents per share in addition to its 14.5 cents interim dividend, which will be paid on 11 April.
BXB’s half-year results released on 18 February were in-line with our expectations, confirming our belief that the company had suffered from global economic uncertainty, which has since improved. We believe the sale of IFCO is positive for BXB’s capital management strategy and balance sheet.
We hold BXB as a market-driven investment in WAM Leaders. BXB shares closed up 1.4% for the month.
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Wilson Asset Management takes advantage of short-term mispricing opportunities in the Australian equity market, providing investors with diversified exposure to a portfolio of undervalued growth companies.
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Matthew has more than 15 years’ experience in the investment industry working as both a portfolio manager and analyst. Matthew is the Lead Portfolio Manager responsible for WAM Leaders.
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