Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Calavo Growers , Inc. (NASDAQ:CVGW) stock soared 14% after the company announced it received a non-binding acquisition offer valuing its shares at $32 each, representing a significant premium to Wednesday’s closing price of $23.18.
The proposal involves a combination of stock from the unnamed bidder and cash, according to a statement from the avocado and fresh produce distributor. The company’s board of directors is currently reviewing the offer with its legal and financial advisors.
Calavo, which specializes in sourcing, packing, and distributing fresh avocados, tomatoes, and papayas, as well as processing guacamole and other avocado products, noted that the offer is subject to several conditions including due diligence and financing.
The company cautioned that the non-binding proposal may not lead to a transaction and stated it does not intend to provide further updates unless warranted. No timeline was provided for when the board might reach a decision on the proposal.
The $32 per share offer represents a premium of approximately 38% above Calavo’s closing price on Wednesday, explaining the sharp rise in the company’s stock following the announcement.
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