By Cristina Gallardo
Plant Health Care shares rose 48% after the London-listed company said that it has agreed to a 32.8 million pounds ($41.6 million) takeover by India’s PI Industries.
Shares at 1305 GMT were up 2.78 pence at 8.50 pence. They are currently up 130% over the year to date.
Under the agreement, accepting shareholders of the provider of patented vaccines for plants will get 9 pence for each share held, the companies said Wednesday. The price is a 57% premium to the company’s closing price of 5.72 pence on Tuesday.
The acquisition will be funded with existing cash, PI said, adding that the move will allow it to offer a balanced portfolio of chemical and biological products to farmers and retailers, and to expand its presence in countries such as the U.S. and Brazil–two of Plant Health Care’s main markets.
“Acquisition of Plant Health Care is a strategic move to expand our portfolio in the agri-tech sector,” said PI Joint Managing Director Rajnish Sarna.
“We believe synergies between our organizations will unlock substantial value and accelerate growth. Together, we will drive significant advancements in sustainable agriculture.”
Write to Cristina Gallardo at cristina.gallardo@wsj.com
Source: https://www.marketwatch.com/story/plant-health-care-shares-jump-after-company-agrees-to-gbp33-mln-indian-takeover-5730945d