Our opinion on the current state of BELL(BEL)
Bell (BEL) is a manufacturer and distributor of heavy equipment, primarily for the mining, construction, agriculture, and waste management industries. It has been impacted by the global slowdown in construction since 2008 and the collapse of the mining sector. Bell's articulated dump trucks (ADTs) are exported worldwide from its manufacturing bases in South Africa and Germany. In addition to its own products, Bell also distributes equipment for global manufacturers, offering a range of over 120 products. Approximately 60% of the company's business comes from outside South Africa. Bell employs 3,200 people, of whom 88.6% are in South Africa.
CEO Gary Bell has indicated that the company might consider delisting, with 1A Bell (the Bell family entity) making an offer to minority shareholders. However, some of these shareholders believe the board has a fiduciary duty to put the company up for sale to the highest bidder. On 18th February 2021, the company announced that 1A Bell would buy a further 31.4% of Bell, giving it a 70% stake at R10 per share, a 13% discount to the share price at that time.
In its results for the six months to 30th June 2024, the company reported revenue up 6% but headline earnings per share (HEPS) down 6%. The company highlighted strong demand for ADTs in the USA, where it improved its market share despite a highly competitive environment and high inventory levels across the industry. Southern hemisphere markets like South Africa and Zambia, driven by mining demand, proved more resilient than northern hemisphere markets like Europe and the UK.
The stock trades over R3m worth of shares on average each day, making it suitable for private investors. There was an on-balance-volume (OBV) buy signal on 7th September 2023 at 1752c per share, and since then, the share has moved up to 2480c. On 15th July 2024, the company announced that the Bell family had made a firm offer to buy out the remaining 30% of Bell, which it did not own, at R53 per share. This offer represents an 82.3% premium to the 30-day volume-weighted average price (VWAP) of the share price on 11th July 2024 (3100c). The share will be delisted once the transaction is completed.
CEO Gary Bell has indicated that the company might consider delisting, with 1A Bell (the Bell family entity) making an offer to minority shareholders. However, some of these shareholders believe the board has a fiduciary duty to put the company up for sale to the highest bidder. On 18th February 2021, the company announced that 1A Bell would buy a further 31.4% of Bell, giving it a 70% stake at R10 per share, a 13% discount to the share price at that time.
In its results for the six months to 30th June 2024, the company reported revenue up 6% but headline earnings per share (HEPS) down 6%. The company highlighted strong demand for ADTs in the USA, where it improved its market share despite a highly competitive environment and high inventory levels across the industry. Southern hemisphere markets like South Africa and Zambia, driven by mining demand, proved more resilient than northern hemisphere markets like Europe and the UK.
The stock trades over R3m worth of shares on average each day, making it suitable for private investors. There was an on-balance-volume (OBV) buy signal on 7th September 2023 at 1752c per share, and since then, the share has moved up to 2480c. On 15th July 2024, the company announced that the Bell family had made a firm offer to buy out the remaining 30% of Bell, which it did not own, at R53 per share. This offer represents an 82.3% premium to the 30-day volume-weighted average price (VWAP) of the share price on 11th July 2024 (3100c). The share will be delisted once the transaction is completed.
Aviso legal
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