KWS Saat jumps after it agrees to sell corn business in South America
26/03/2024 08:48
** Shares in KWS Saat KWSG.DE jump around 9% after the
German seeds producer has agreed to sell its corn business and
licenses for breeding material in South America to Argentinian
plant genetic company GDM for a mid-three-digit-million euro
range
** The transaction is expected to be completed in Q2 and
will have a significant positive impact on its key financial
figures, KWS said
** "This sale divests the majority of its South American
business, though its profitable beet and veggies as well as
European corn is unaffected," Jefferies says
** The broker notes that KWS is also investigating strategic
options for AgReliant, its challenged North American joint
venture with French company Vilmorin
** "We take these steps as positive action in narrowing
strategic focus on areas where value accretion to the business
is possible and profitable, with further commentary on strategic
options for the US a key positive," it adds
** If gains hold, the stock will see its best day since
October 2008, also topping Germany's small-cap index .SDAXI
(Reporting by Ozan Ergenay)
((ozan.ergenay@thomsonreuters.com))