Given the share price sensitivity of this forecast update, the Comvita Board
believes it is obliged at this time, to disclose that Comvita is party to a
Confidentiality Agreement with a third party, pursuant to a due diligence
process currently being conducted on the Company. This process, which has
been ongoing for several months, is to enable the third party to assess the
potential acquisition of all or substantially all the shares in Comvita,
whether by way of takeover, scheme of arrangement, amalgamation or other
business combination.
What they said in mid April. It strikes me that this has now become unusually protracted. given that due diligence had already run several months in mid April.
Perhaps the buyer is absolutely dazzled and trying to wrap their head around CVT's "world class" management systems and procedures.
This is starting to look rather ominous for shareholders. I struggle to see the value in a company with clearly defined horticultural risks trading at 35 times current year earnings and its looks like the buyer might be struggling to see the common sense of that too.
Sure some of their products are actually quite good but 35 times is too rich, a bit like their overtly optimistic forecast of $400m sales by 2021, or have they quietly pushed that target year out again already ?