Pest control company Rentokil Initial Plc (NYSE:RTO) shares are trading higher after activist investor Nelson Peltz's Trian Fund Management LP has reportedly increased its stake, making it one of the top ten shareholders of the U.K.-based company.
This move has notably revived Rentokil's shares, which had previously suffered due to a post-COVID market slump.
As of mid-morning trading in London, the company's shares were up by about 12%, valuing Rentokil at approximately £11.8 billion ($15 billion), reported Bloomberg.
This boost comes after a challenging year where Rentokil's stock value declined significantly, affected by reduced demand in the post-pandemic period, the report highligted.
During the pandemic, Rentokil experienced a surge in business as increased hygiene awareness led to heightened demand for pest control services.
However, as the situation normalized, the company faced a downturn, partly due to the resumption of travel, which briefly increased demand due to concerns over bed bugs in hotels.
Trian's acquisition is part of a broader strategy that has seen the firm take significant positions in other major companies, including Unilever Plc (NYSE:UL) and Ferguson Plc (NYSE:FERG).
Notably, Trian's involvement often precedes major strategic shifts aimed at enhancing shareholder value, as seen in its push for Ferguson's re-listing in New York, which led to a substantial increase in its stock price.
With a significant portion of its revenue coming from North America, Rentokil's current valuation stands at about 17 times its 12-month forward earnings, per the report.
This is considerably lower compared to its U.S. peers, indicating a potential undervaluation issue that Trian might address.
Price Action: RTO shares are trading higher by 13.1% at $30.44 in premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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據報道,激進投資者納爾遜·佩爾茨的Trian Fund Management LP增加了股份,使其成爲這家總部位於英國的公司的十大股東之一,害蟲防治公司Rentokil Initial Plc(紐約證券交易所代碼:RTO)的股價走高。
此舉顯著恢復了能多潔的股票,該股此前曾因新冠疫情後的市場低迷而遭受損失。
彭博社報道,截至倫敦上午的交易中,該公司的股價上漲了約12%,使能多潔的估值約爲118億英鎊(合150億美元)。
報告強調,這種提振是在經歷了充滿挑戰的一年之後出現的,受疫情後需求減少的影響,能多潔的股票價值大幅下跌。
在疫情期間,由於衛生意識的提高導致對害蟲防治服務的需求增加,能多潔的業務激增。
但是,隨着情況的正常化,該公司面臨衰退,部分原因是旅行的恢復,由於對酒店臭蟲的擔憂,旅行短暫地增加了需求。
Trian的收購是更廣泛戰略的一部分,該戰略使該公司在包括聯合利華集團(紐約證券交易所代碼:UL)和弗格森集團(紐約證券交易所代碼:FERG)在內的其他大公司中佔據重要地位。
值得注意的是,Trian的參與通常先於旨在提高股東價值的重大戰略轉變,其推動弗格森在紐約重新上市,這導致其股價大幅上漲。
報告稱,由於其收入的很大一部分來自北美,能多潔目前的估值約爲其12個月遠期收益的17倍。
與美國同行相比,這要低得多,這表明Trian可能會解決潛在的低估問題。
價格走勢:在週三的最後一次盤前檢查中,RTO股價上漲13.1%,至30.44美元。
免責聲明: 該內容部分是在人工智能工具的幫助下製作的,並由Benzinga編輯審查和發佈。
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