Shares in Tandou Limited (ASX:TAN)
soared on Monday after releasing first half results and responding to a takeover offer from Webster Limited (ASX:WBA)
lobbed on Friday.
Australia’s largest walnut grower Webster is offering one of its shares for every 2.25 Tandou fully paid ordinary shares, valuing the cotton grower at $114 million.
Both groups have entered into a merger implementation agreement with view to creating a large diversified agribusiness with significant strategic water entitlements.
Tandou’s directors have unanimously backed Webster’s potential takeover and described the offer as attractive for Tandou’s shareholders.
Shares in Tandou soared almost 17 per cent to close at $0.56 on Monday.