Rentokil's SOLitude Sale Boosts Share Buyback Potential
Dow Jones
Sep 22
1419 GMT - Rentokil's agreement to sell SOLitude Lake Management to Bain Capital should be viewed as a positive step in streamlining its business and boosting returns to shareholders, write Bernstein analysts Will Kirkness and Filippo Giardini. Proceeds are likely to be redistributed to investors via a share buyback, according to the analysts. "The $230 million disposal of SOLitude simplifies Rentokil's portfolio, sharpening the company's focus on its core pest control and adjacent hygiene operations while generating approximately $180 million of post-tax proceeds," Bernstein adds. It has an outperform rating on the stock and price target of 510 pence. Shares are up 0.4% at 319 pence, but down 29% over the year-to-date.
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