Credit Suisse takes a bite out of Greencross

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credit suisse greencrossCredit Suisse reportedly forked out $7.30 a share for 12.77 per cent of the veterinary group Greencross this week, giving the investment bank a stake valued at around $106 million.

So many were surprised when the veterinary giant’s share price promptly took a nose dive. The group’s shares dropped more than seven per cent to $7.37, only slightly more than Credit Suisse’s purchase price.

The price drop has come as a surprise to many, given that Greencross is Australia’s largest veterinary group—controlling 10 per cent of Australia and New Zealand’s $9 billion pet industry—is continuing to expand its network of 376 clinics and stores, and has posted consistently positive revenue and profit numbers. For instance, in mid-year results the group’s revenue climbed 18 per cent to $362.7 million and net profit went up 11.5 per cent to $21.17 million.

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