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.