Fund Manager Summary
The fund managers believe that the outlook for Matrix Composites & Engineering Ltd (ASX:MCE) remains positive, despite the current share price of approximately $0.22 not reflecting its performance. In their opinion, the recent approach from AIS Limited valued MCE at a 100% premium to its share price, indicating potential for significant growth. Although complexities prevented acceptance of the deal, the fund managers anticipate that the sector is ripe for consolidation. They expect further developments before the maturity of their 10.5% convertible notes in December 2025, which could enhance MCE's valuation. The fund managers remain optimistic about the potential for a deal with AIS, especially given the considerable synergies and reduced competition that could arise from such a merger.
Source: Trading View
Commentary From The Managers
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Collins St Asset Management
30 June 2025
$0.22
Summary
- Collins St Asset Management continues to hold its position in Matrix Composites & Engineering (ASX:MCE) due to its strong performance.
- The share price of MCE does not reflect its operational success.
- Recent reports indicate that MCE was approached by AIS Limited, a British competitor, valuing MCE at a 100% premium to its then-current share price.
- MCE's management indicated that the proposed deal was complex and ultimately unacceptable.
- AIS Limited is exploring an independent IPO on the ASX, aiming to raise $500 million and achieve a market cap of $500 million.
- Collins St Asset Management believes the sector is ripe for consolidation and anticipates further developments before the maturity of their Note in December.
- Overall, MCE's potential for a deal remains a focal point for Collins St Asset Management as they monitor the evolving situation.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Collins St Asset Management
30 June 2025
$0.22
- Collins St Asset Management continues to hold its position in Matrix Composites & Engineering (ASX:MCE) due to its strong performance.
- The share price of MCE does not reflect its operational success.
- Recent reports indicate that MCE was approached by AIS Limited, a British competitor, valuing MCE at a 100% premium to its then-current share price.
- MCE's management indicated that the proposed deal was complex and ultimately unacceptable.
- AIS Limited is exploring an independent IPO on the ASX, aiming to raise $500 million and achieve a market cap of $500 million.
- Collins St Asset Management believes the sector is ripe for consolidation and anticipates further developments before the maturity of their Note in December.
- Overall, MCE's potential for a deal remains a focal point for Collins St Asset Management as they monitor the evolving situation.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"It appears there's a brewing storm in the sector, with Matrix Composites & Engineering potentially undervalued amid whispers of consolidation. As AIS Limited eyes the ASX, the future seems ripe for a game-changing deal that could redefine the landscape."
Last Updated: 30 Jun 2025
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Frequently Asked Questions
Who is investing in Matrix Composites & Engineering Ltd (ASX:MCE)?
Fund managers including Collins St Asset Management have invested in Matrix Composites & Engineering Ltd (ASX:MCE).
Why do fund managers invest in Matrix Composites & Engineering Ltd?
Fund managers are investing in Matrix Composites & Engineering Ltd (MCE) due to its strong operational performance, which they believe is undervalued in the market. Recent reports indicate that MCE was approached for a potential merger that would value it at a significant premium, highlighting the company's strategic importance in a consolidating sector. The anticipated synergies from such a merger, alongside MCE's robust financial outlook, suggest potential for substantial growth, making it an attractive investment opportunity.
What happened to Matrix Composites & Engineering Ltd (ASX:MCE)?
There have been no recent updates from fund managers regarding Matrix Composites & Engineering Ltd although fund managers including Collins St Asset Management have previously commented.