They appear to have paid a reasonable price overall - I say this because I believe they have paid approximately the same EBITDA multiple that GNC was trading on.
Watch this one zoom should the Aussie dollar fade.
I think as part of Graincorp, these business are worth much more than what has been paid. Also the greater diversification adds to the perceived safety of investing in GNC. Finally I think this takeover adds to the allure of GNC as a takeover target.
I think the market will respond favorably to this deal. We'll have to wait and see - some dilution to deal with due to the cap raise.
GNC Price at posting:
$9.22 Sentiment: ST Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)