Australia's Codan rises on deal to buy U.S.-based Zetron

JVCkenwood

01/04/2021 02:15

** Shares of electronics solutions developer Codan Ltd
 CDA.AX  rise as much as 2.5% to A$15.83
    ** Co to buy 100% of U.S.-based co Zetron Inc from
JVCKENWOOD Corp for an upfront cash payment of $45 mln
 urn:newsml:reuters.com:*:nASX22dzT
    ** CDA says Zetron is expected to contribute about A$67 mln
($50.83 mln) of sales and A$8 mln in EBITDA under Codan's
ownership in FY22 and therefore it will be earnings-per-share
accretive
    ** Stock on track for a second consecutive session of gains
    ** Codan up 38.1% this year, as of last close

    ($1 = 1.3180 Australian dollars)

 (Reporting by Aditya Munjuluru in Bengaluru)
 ((aditya.srivastsav@thomsonreuters.com))