(Photo: Getty Images)
BRP (DOO-T, $118.17, DOOO-N, $94.02): Full throttle
Despite destocking, BRP managed to beat analysts’ expectations in the second quarter of fiscal 2022 and is determined to continue on that path despite pitfalls looming on the horizon, said TD Securities’ Brian Morrison.
What stocks and analyst reports have attracted attention this week? Here is a press review that collects various texts on the stock market.
In titles in action:
Cannabis: SNDL announces agreement to acquire Valens
Cannabis shop owner SNDL says it will acquire cannabis producer Valens Company (VLNA.TO, $1.12) and merge the companies in a $138 million stock deal. As part of the agreement, SNDL will acquire all of the issued and outstanding common shares of Valens other than those held by SNDL and its subsidiaries.
Valens shareholders will receive 0.3334 SNDL common shares for each Valens share they own. SNDL explains that the offer implies a price of $1.26 per share of Valens, which is a 10 percent premium to the 30-day volume-weighted average price.
The companies estimate that their merger will generate over $10 million in annual savings and increase SNDL’s overall share of the cannabis market to 4.5%. SNDL, which is behind the Value Buds and Spiritleaf brands, says the deal will close in January.
Software: Link Shareholders Approve Dye & Durham Offer
Shareholders of Australia’s Link Administration Holdings have voted in favor of Dye & Durham’s proposed acquisition of Link Group (DND.TO, $16.55), the latter said. Dye & Durham managing director Matthew Proud adds that the approval was an important step towards the success of what he called a transformative deal.
The Toronto-based cloud software company says the acquisition will expand its customer base in key UK and Australian markets and strengthen its business software and information services solutions. As part of the agreement, Link Group shareholders will receive a base consideration of A$4.81 per share.
The transaction is subject to judicial and regulatory approval, including by the Australian Competition and Consumer Commission and the UK Financial Conduct Authority, as well as other customary closing conditions. Earlier this year, the Australian Competition and Consumer Commission said it had found significant preliminary concerns about competition in the deal.
CAE (CAE, $26.15): He signs a 15-year partnership with Quantas. The specialist in simulation and simulation technology and integrated training solutions for aviation has received its fair share of bad news in recent months, and its share price has taken a hit.
BCE (BCE, $66.84). According to an analyst at Scotia Capital, the market is approaching a tipping point. The Canadian telecommunications giant has been working on building an FTTH (fiber-to-the-subscriber) access network for 12 years, which has required significant infrastructure investments that take a long time to generate expected revenues, explains Maher Yagi, an analyst at Scotia Capital.
Crew Energy (CR, $6.35): A sale of non-core assets that analyst Desjardins is pleased with. The share price of the Calgary natural gas producer, which is rich in liquid hydrocarbons, has benefited greatly from rising commodity prices and has quadrupled over the past year. The firm appears unwilling to rest on its laurels and has just closed a deal that appears to have pleased analyst Desjardins.
To see the titles from August 23rd, click Next.