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PSP Investments Takeover Bid For Webster

Webster Limited (ASX: WBA) price action received a boost, having emerged the company is an acquisition target for PSP Investments. The Canadian pension fund has tabled a takeover bid that values the agricultural firm at $854 million. The stock has rallied by more than 50% in response to the takeover bid.

Under the terms of the takeover bid, PSP Bidco and Sooke Investments are to acquire all shares of Webster that they currently do not own at $2 a share. The takeover price represents a 57% premium to Webster closing share price before the announcement was made.

The acquisition of Webster will provide the pension fund manager with access to Webster’s walnut and almond orchards in New South Wales and Tasmania. The agricultural firm also owns irrigable land for cotton, among other annual crops. It is also engaged in cattle and sheep production.

Shareholders are to vote on the PSP takeover bid early next year. An independent board committee has already approved the deal. Webster CEO, Maurice Felizz, has echoed his support for the deal reiterating that PSP boasts of a track record in managing and investing in agricultural assets. The transaction, according to the executive, represents a positive outcome for all investors, given the premium on offer.

CardieX Medical Device Sales Milestone

Cardiex Ltd (ASX: CDX) was a big mover after announcing positive results for its medical device division. The unit is fresh from registering its highest sales growth in 5 years, with sales increasing by 88% in the first quarter of fiscal 2020.

Sales for the company’s flagship XCEL medical device was up 88%, consequently exceeding the $900k mark. The chief executive officer, Craig Cooper, expects sales growth to persist, heading into the year-end as they roll out new pricing sales and marketing campaigns.

Sales growth in the medical unit affirms what it’s turning out to be a transformational year as Cardiex continues to benefit from strategic partnerships. In addition, the company has expanded its operations by establishing china operations expected to drive the growth of the traditional ATCOR business.

The company has also made impressive strides in transitioning from a pure medical device company to becoming a multi-platform provider of consumer and medical device software. Going forward, focus is on growing sales in the ATCOR division. The company has already inked partnerships and licensing agreements expected to drive sales.

FYI Resources Commences Alumina Trial Production

FYI Resources Ltd (ASX: FYI) rallied by 5% after confirming the commencement of trial production of high purity alumina at a recently commissioned plant in Welshpool Western Australia. Trial production marks an important technical, and corporate milestone as the company moves to start commercializing its HPS strategy.

The chief executive officer, Roland Hill, expects an outcome from the trial program to help validate pre-feasibility study results as well as provide excellent data for inputs. The trial production comes at a time of growing demand for high purity alumina given its physical and chemical properties that make it ideal for use in sapphire glass used in electronic screens for smartphones, tablets, and televisions.

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Webster Limited Scheme Implementation Agreement

Webster Limited (ASX: WBA) was up by more than 50% on announcing the signing of a binding Scheme Implementation agreement. Under the terms of the agreement, PSP Bidco and Sooke Investments are to acquire all the ordinary shares of Webster that they don’t already own, for a cash price of $2 per share.

 The $2 a share Preference Share scheme gives Webster a market capitalization of $724 million with an enterprise value of $854 million. The scheme consideration will see shareholders walking away with $2 per each share held representing a 57% premium over Webster share closing price as of October 2, 2019.

Once the scheme is finalized, Webster, which operates walnut and almond orchards, will have to transfer certain assets to a new entity formed by PSP investments for a total value of $276.7 million. Some of the assets up for transfer include the Kooba property aggregation as well as hay properties and southern grazing stock. Implementation f the scheme is, however, subject to the approval of Webster shareholders.

Hammer Metal Bronzewing South Gold Project Development

Hammer Metals Ltd (ASX: HMX) was up by more than 15% after announcing positive results as part of an ongoing drilling program at the Bronzewing South gold project. Upon testing five targets as part of the 14 whole programs, the company uncovered significant intersections of gold mineralization at the project at different depth.

The exploration and mining company is planning to initiate a phase 2 program that will test five targets developed by IP and gravity data. Plans are also in the pipeline to commence RC and air core drilling programs along with Bronzewing South and Orelia trends.

 The aggressive exploration and mining operation comes months barely after Hammers Metal completed the acquisition of the Bronzewing South gold project. The company has already generated multiple drilling targets that continue to show tremendous prospects of mineralization.

Separately, the company has confirmed the appointment of Mr. Dan Thomas as the new managing director. He joins the company with vast experience in project management as well as corporate development and mergers & acquisitions across resource sectors.

4DS Memory IMEC Megabit Integration Milestone

4DS Memory Ltd (ASX: 4DS) was up by 16% after providing a positive update on the development of its memory technology. The company has since reached an agreement with IMEC to move forward with the integration of its memory technology in Imec’s megabit platform.

The integration will allow 4DS memory to demonstrate the full potential of its Interface Switching ReRam technology. The integration involves the monitoring and analysis of speed as well as retention. The two intend to produce an initial lot of 300mm wafers in the fourth quarter.

Megabit memories are becoming increasingly popular, given their ability to collect statistically significant and meaningful data. Their high endurance speed, as well as data retention and yield, makes them ideal for high volume memory makers.

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