Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Fyffes (FFY:AIM) 186p

Gain to date: 44.4% 

Original entry point: Buy at 128.8p, 22 Sept 2016


Readers who followed our buy call on tropical produce distributor Fyffes (FFY:AIM) are sitting on a tasty 44.4% profit. This follows the recommendation (9 Dec) of a €751m takeover by Japanese conglomerate Sumitomo for the Dublin-headquartered bananas, pineapples and melons marketer.

FYFFES (LON) - Comparison Line Chart (Rebased to first)

Sumitomo is offering €2.23 per share (187p at latest exchange rates) in cash to grab the world’s oldest fruit brand and the fact the shares trade at or around the bid price suggests a counterbid is unlikely. As such, investors should sell in the open market in case this offer should fall through.

The offer price not only represents a juicy 49% premium to the undisturbed share price, it is also a 37% premium to Fyffes’ all-time high of €1.62 reached in April.

Shareholders will receive a €0.02 dividend for the 2016 financial year, bringing the total amount to €2.25 per share. (JC)

Investors should bank their 44.4% profit and sell in the open market.

‹ Previous2016-12-15Next ›