OMVJF - OMV AG Is Approaching Fair Value As Risk Profile Shifts
2024-05-18 05:46:42 ET
Summary
- Negotiations between OMV and Adnoc about a combination of Borealis and Borouge have slowed down.
- At the same time, the stock price has increased materially, thereby shifting the risk profile.
- OMV's dividend policy remains attractive, despite the higher share price, I still expect a decent forward yield.
Earlier this year, I explained why I think that a deal between OMV AG ( OTCPK:OMVJF , OTCPK:OMVKY ) and the UAE’s Abu Dhabi National Oil Co. (“Adnoc”) has the potential to unlock significant value for shareholders of the former. Since then, negotiations have, unfortunately, been dragging on, so far without result. Nonetheless, even without the catalyst of a deal, the stock recorded substantial gains in the meantime. Below, I will give an update on recent developments and how they affect the investment case....
OMV AG Is Approaching Fair Value, As Risk Profile Shifts