Tate & Lyle PLC "Top 3 investor debates post INGR offer announcement" (Neutral)

Research evidence excerpt

Tate & Lyle PLC "Top 3 investor debates post INGR offer announcement" (Neutral)

ck lacks a

03/27E 40.95 43.34

clear catalyst for recovery due to several challenges: (1) a bleak near term earnings

03/28E 43.79 47.87

outlook and potential longer term structural pressures from the adoption of GLP-

1s and concerns around the use of sweeteners/hydrocolloids in packaged food/ Priyanka Patel

beverages; (2) a series of profit warnings / downgrades falling short of targets has Analyst

raised questions on execution and how "speciality" the business actually is; (3) priyanka.patel@ubs.com

medium-term guide risk overhang given the poor track record of growth - see +44-20-7568 0016

inside. There is also some uncertainty around Huber (owns 17% of Tate's shares as Joshua Spector, CFA

part of the Kelco acquisition and holds two seats on the board) which entered at Analyst

680p implying a loss at the current offer price. joshua.spector@ubs.com

+1-212-713 6188

Does the deal make strategic sense for INGR? Could INGR offer a higher

Charles Eden, ACA

price? Strategically the deal makes sense in our view (see our US team detailed Analyst

analysis on the deal here) as it would help build out INGR's downstream Texture & charles.eden@ubs.com

Healthful Solutions business that would increase from ~33% of sales to ~53%. +44-20-7568 9622

The initial share price reaction for INGR was negative (down 3%) with the main

concern from investors around leverage which we estimate could increase to 3.3x

(UBSe 2026); albeit, in general, most investors we spoke with seem supportive of

the deal with a longer term view and given the attractive valuation for Tate. INGR's

press release states that a future offer could be higher or lower than what was

initially presented.