BUZZ-Legumex Walker Inc: To sell special crops business for C$94 mln

Mon Sep 14, 2015 11:12am EDT
 
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** Shares of the Canadian processor of legume and canola crops up as much as 142 pct at C$2.18; top percentage gainer on the Toronto Stock Exchange

** Winnipeg, Manitoba-based Legumex sells special crops business to Scoular Co, a U.S. grain trading and handling firm, for C$94 million ($70.88 million)

** Analysts at Laurentian Bank Securities upgrade to "tender" rating from "hold"; double PT to C$2.50 from C$1.25

** "We view the transaction outcome as a positive event given Legumex's history of underperformance and debt covenant violations and do not believe another bid is forthcoming," analysts write in a note

** Current median PT is C$2.50, compared with PT of C$5 two months ago

** In March, Legumex said it might sell itself or may consider other strategic options

** Up to Friday's close, stock had more than halved in the last 12 months ($1 = 1.3262 Canadian dollars)