Harvey Norman Holdings Limited (ASX:HVN) announced the acquisition of a significant stake in Coomboona Holdings Pty Limited for $34 million.
Coomboona Holdings is an owner of land and farm assets in the Coomboona district of the Goulburn Valley region in northern Victoria. The company specialises in dairy farm operations and a pedigree breeding and genetics division.
The transaction will be $25million for a 49.9 per cent interest in the company plus an advance of approximately $9 million to Coomboona.
On 28 August Harvey Norman released its full year results for FY15, reporting a net profit after tax growth of 26.6 per cent to $268 million. The profit growth was largely due to inflated property valuations, up $8.73 million in FY15 compared to a decrease of $11.65 million in FY14.
Following the results announcement in late August, HVN’s share price initially gained, however has declined 4.64 per cent since, closing at $4.31 yesterday. The decline is most likely due to overall market conditions. Results came in within expectations and FY16 guidance remains promising.
Author: Ben Visser
Sep 02, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.