Monbat is on the lookout for potential acquisitions; attributes the worse 2018 on downturn in recycling (NEUTRAL)

During a meeting with investors, Monbat disclosed that it has given up acquiring Assad due to a concern about the shareholder structure and the degree of control over its Algerian subsidiary. The company announced that it has identified potential targets in Morocco and Egypt as well as a partnership in South Africa, which could be used to further enter the African market. Elsewhere, Monbat researches opportunities in Azerbaijan, Qatar, and Uzbekistan as well. The company said that it is going to use the funds from the EUR 28.0m convertible bonds it issued in January to complete potential acquisitions, saying that the latter is covered under their prospectus. In addition, the management commented on 2018 performance, attributing both flat sales and lower EBITDA on declining lead prices, which hurt recycling and its contribution to consolidated results. Sales of starter batteries rose on increased exports to South Africa on narrower margin, which left the segment’s H1 EBITDA at its 2017 level.