Ann: Investor Presentation FY22 1H Results, page-34

Bridget Carter ('Data Room') in 'The Australian' on Tuesday 22 June 2022 writes:

The $545m Ridley Corporation has been gaining attention lately as a possible takeover target, but some investors are watching it closely in the hope it embarks on a share buyback.

Fund managers believe that with the latest Australian sharemarket sell-off, stocks like Ridley, Nine Entertainment and Myer look cheap and their robust balance sheets create prime opportunities to buy back shares they had issued at market value, in a move that will boost their medium-term values.

Ridley’s shares on Tuesday closed at $1.76.

Despite a recent rally, fund managers believe it represents good value, given the turnaround in the company’s performance.

DataRoom understands that the country’s largest grain handler, GrainCorp, approached Ridley about a buyout recently.

However, some close to GrainCorp indicate that a deal is unlikely to unfold any time soon. This suggests Ridley might have swiftly rebuffed its approach, likely to have been too cheap for the board’s liking.

Ridley’s net debt after the first six months of its 2022 financial year was $17.2m