Can’t help noticing the synergies that exist with Netafim, the world’s largest irrigation company recently majority acquired by Mexichem at a value of approx US $1.8 billion. Wonder if the statement in the ROO prospectus “Enter into licensing agreements with leading global irrigationand/or greenhouse infrastructure players and/or withagriculture suppliers – Based on discussions with companies to date, the Company expects to be able to enter into at least 1 strategic agreement before 2018”
could be a reference to them?
From Netafim’s website http://www.netafim.com/ Netafim is the global leader in smart irrigation solutions for a sustainable future. With 28 subsidiaries, 17 manufacturing plants and 4,300 employees worldwide, Netafim delivers innovative solutions to growers of all sizes, from smallholders to large-scale agricultural producers, in over 110 countries. Founded in 1965, Netafim pioneered the drip revolution, creating a paradigm shift toward low-flow agricultural irrigation. Today, Netafim provides diverse solutions – from state-of-the-art drippers to advanced automated systems – for agriculture, greenhouses, landscaping and mining, accompanied by expert agronomic, technical and operational support. Specializing in end-to-end solutions from the water source to the root zone, Netafim delivers turnkey irrigation and greenhouse projects, supported by engineering, project management and financing services.
Synergies:
Netafim was founded in Israel and remains an Israeli headquartered company today.
Should ROO enter into a licensing agreement with Netafim, the world’s largest irrigation company and with this tight share structure, I would expect a share price multiples of where we are currently.
DYOR
ROO Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
