PSP Investments (Reportedly) In A Flap Over Inghams (ING AU)

• Inghams (ING AU) is Australia and New Zealand’s largest vertically integrated poultry producer with a market in each country of ~40% and ~35% respectively.

• Ingham’s share price is down 37% in the past years via a combination of ballooning costs, a bird flu lockdown in WA, and its legacy concentrated market exposure (Woolworths and Coles).

• Shares popped 6.7% on the 13th August amid media speculation about a possible acquisition (PSP Investment rumoured). Inghams denied receiving any approaches. But the situation is still worth discussing.

The Trade:

• There is, as yet, no Offer on the table.

• And none may be forthcoming.

• The share price is pretty beaten up here.

• FY26E guidance is uninspiring; and current metrics are not inexpensive.

• Not something I would chase.

• Management may provide greater clarity on any approaches at the results briefing this Friday