- Farmers Edge is reporting a revised non-binding acquisition proposal from majority shareholder Fairfax Financial Holdings
- The new C$0.35-per-share offer is 40 per cent above the initial C$0.25 per cent figure
- Farmers Edge is a digital agriculture company offering proprietary solutions across the globe
- Farmers Edge stock (TSX:FDGE) is up by 17.24 per cent year-over-year, but remains down by 98.19 per cent since inception in 2021
Farmers Edge (TSX:FDGE) is reporting a revised non-binding acquisition proposal from majority shareholder Fairfax Financial Holdings (TSX:FFH).
Fairfax, which owns 61.4 per cent of Farmers Edge, intends to acquire the remaining shares of the agricultural technology company for C$0.35 per share in cash, a 40 per cent increase from the initial offer of C$0.25 reported in November 2023, and a more than 200 per cent increase from the closing price on the trading day before the initial offer.
Farmers Edge has signed a letter of intent with a Fairfax affiliate to facilitate the proposed transaction.
The acquisition is contingent on:
- Final approval by Fairfax, Farmers Edge’s board and a special committee of independent directors on Farmers’ board tasked with evaluating the transaction’s financial terms
- The approval of Farmers Edge shareholders, regulators and the TSX
- A definitive agreement to the satisfaction of both companies
- Receipt of a formal valuation and fairness opinion from BMO, which is acting as financial advisor to the independent committee
Farmers Edge is a digital agriculture company offering proprietary solutions across the globe. The company’s platform uses connected field sensors, artificial intelligence and big data analytics to yield value-added insights across the agricultural ecosystem.
Farmers Edge stock (TSX:FDGE) is up by 36 per cent on the news, trading at C$0.34 per share as of 11:45 am ET. The stock has gained 17.24 per cent year-over-year, but remains down by 98.19 per cent since inception in 2021.
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