Comvita to enter S&P/NZX 50 if Diligent takeover proceeds
S&P Dow Jones Indices says Diligent will be removed from the benchmark subject to shareholder approval of the company's sale.
Comvita [NZX: CVT] is to enter the S&P/NZX 50 Index if the takeover of Diligent Corp [NZX: DIL] by Insight Venture Partners goes ahead.
S&P Dow Jones Indices says Diligent will be removed from the benchmark subject to shareholder approval of the company's sale. Trading in Diligent shares is due to be halted on April 11, two days before a special meeting of shareholders is to be held. If the sale goes ahead it will be delisted. If the sale doesn't complete then trading in Diligent will resume.
Comvita chairman Neil Craig welcomed the company's proposed ascension to the benchmark. "S&P/NZX 50 Index inclusion is another positive step for Comvita on its journey to becoming a truly global, natural health products company."
"Recently, we affirmed our strategic plan to deliver $400m of revenue by 2020, and index inclusion will increase our relevancy to New Zealand and offshore investors," Mr Craig says.
"We welcome new shareholders who share our vision of realising Comvita's potential in delivering naturally sourced health products to the world. Index inclusion is also rewarding for our existing, loyal shareholder base who have supported Comvita over many years. We look forward to further opportunities to increase value for them."
In its most recent published results, Comvita reported a profit of $3 million on sales of $91.1 million for the six months ended September 30, 2015.
Shares in Comvita rose 4.1% to $10.50 and have gained 20% since the start of the year.
(BusinessDesk)
Edwin Mitson
Wed, 06 Apr 2016
Wed, 06 Apr 2016
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Comvita to enter S&P/NZX 50 if Diligent takeover proceeds
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