Monday, October 9, 2017

Almond grower Select Harvests Jumps on Bid by Abu Dabi Soveriegn Wealth Fund

smh.com:

Select Harvests shares have gone nuts after the Australian almond farmer was subject of a $430.6 million takeover proposal by an Abu Dhabi-based sovereign wealth fund.

The ASX-listed producer said on Monday it received the $5.85 cash per share offer from Mubadala Investment Company on September 19, but that it would not progress a bid that it said significantly undervalued the company.

Interesting that the company said the bid undervalued the company but management did not say what a fair value would be. Management also said a revised bid could be forthcoming.

The stock price has not been performing well since I bought it. However I like this business long term because regardless of what happens in the economy the trees continue to grow and produce.

Eventually a bumper crop comes along just when prices are high and the stock will soar.

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