Yamada Green Resources

Yamada Green Resources: Yamada Green proposed to acquire a 67,000 mu moso bamboo plantation on a 10-year lease for Rmb234.5m ($47.9m), expanding the group's current moso plantation area from 33,845 mu to 100,845 mu (+198%). The plantation located at Jiangle County, Fujian Province in China, is meant solely for the cultivation of moso bamboo, spring bamboo shoots and winter bamboo shoots. Yamada will manage the plantation and be the entitled beneficiary of the produce. As the consideration is larger than Yamada's current market cap of $88.6m, the deal is still subjected to shareholder's approval. The group intends to fund the acquisition via internal funds. As at 30 Jun 2014, Yamada's balance sheet is healthy with net gearing of 1.1%. At $0.164, Yamada Green is valued at 4x P/E and 0.53x P/B.