Southern Cross Electrical Engineering Limited (4SO) Gets a Buy from PAC PartnersWe anticipate a sell-off this morning and maintain our BUY with a reduced price target of $2.40. We believe there is an opportunity to purchase a high quality business post a one-off event. What Happened SXE subsidiary Heyday had entered into arbitration proceedings against CDSJV for additional costs incurred as a result of delays in performing works on the WestConnex M5 motorway tunnel project in Sydney (project completed in 2020, arbitration previously announced in December 2024). Heyday had been compensated for some of these costs during the project, but commenced arbitration seeking $22m. While management maintains Heyday’s claims had merit and noting CDSJV had made payments to Heyday so they probably did too, the case was lost on time-bar provisions, not underlying causation.