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- Agriculture company and walnut specialist Webster announced prospects of a Canadian buyout this morning, valued at $854 million
- The buyout comes from one of Canada’s largest pension investments boards, PSP Investments
- The buyout at $2 apiece for Webster shareholders represents a 57 per cent premium from yesterday’s closing price at $1.27 apiece
- Since the news broke to Australian Securities Exchange (ASX) punters, shares in Webster has jumped 52 per cent to trade at $1.93 apiece
Share prices in agriculture company Webster has jumped 52 per cent this morning on the Australian Securities Exchange (ASX) after news of a Canadian buy out.
Shares closed yesterday at $1.27 apiece and are now trading at $1.93. The rocketing price upgrade comes after the company announced a buyout valued at $854 million from PSP Investments.
The buyout represents a large 57 per cent premium to the company’s last closing price, at an even $2 apiece for Webster shareholders.
“The proposed transaction provides a substantial premium for both Webster ordinary shareholders and preference shareholders and also provides enhanced certainty and accelerated value for their shareholding,” Webster CEO Maurice Felizzi said.
Over a 30-day weighted average, the buyout from PSP gives a 60 per cent premium to shareholders.
Webster’s portfolio of agriculture work is most known for assets in the walnut industry.
Maurice expressed in the company’s media statement this morning his faith in PSP Investment’s attentiveness to Wesbter’s assets.
“We are encouraged by their understanding of our business and its ongoing importance to regional and rural communities in Australia.”
PSP Investments is one of Canada’s largest pension investment boards and was founded in 1999.
Today’s news isn’t the first time PSP has made an agriculture investment, having already owned 19.1 per cent in Webster, alongside investments in Queensland based Stahmann Farms and joint ventures with the Hewitt Family and Robinson Family.
“PSP Investments has a proven track record in managing and investing in agricultural assets over the long term for sustainable value creation and therefore we believe this transaction represents a positive outcome for all stakeholders in our business,” Maurice added.
“We also concluded that Webster and PSP Investments have complementary, long term growth aspirations making PSP Investments a logical and suitable owner of the Webster asset portfolio.”
In the case of a successful takeover, PSP is expected to transfer assets to a new private entity called KoobaCo for a value of $276.7 million.
