RIC's Novacq production site in Yamba is for sale (AFR today p32).
RIC is an obvious candidate to buy and likely the vendor here is simply seeking to drum up a competing bid or two. They will want a steep price due to RIC's existing and planned investment on the land.
We cannot know if RIC needs the entire property to meet projected demand for Novacq - RIC may not know either, though it says (RIC slides, 6 April):
"Ridley invested c.A$2m in calendar 2016 at Yamba to develop NovacqTM production, including pond preparation and fit-out, infrastructure and execution of a 10 year lease on enough pond capacity to fully service 100% of Australia’s current prawn demand and expected growth."
Another page in the exciting Novacq story.
I do not see Novacq's potential recognised in the share price. A few more moves - scientific studies, eager customers, production commitments - and this baby will boom.
Ash
RIC Price at posting:
$1.41 Sentiment: Buy Disclosure: Held
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