Insights

Cardno (ASX:CDD) share price skyrockets 30% on strategic review

Cardno takes a closer look, after interest from outsiders…
The post Cardno (ASX:CDD) share price skyrockets 30% on strategic review appeared first on The Motley Fool Australia. –

The Cardno Limited (ASX: CDD) share price is flying higher this morning after the engineering services company announced it will undertake a strategic review.

At the time of writing, the Cardno share price is trading at 95 cents, up 31%

What’s going on with the Cardno share price?

Cardno is a global engineering company operating across infrastructure, environmental, and social developments.

The engineering consulting company has commenced a strategic review process following a number of unsolicited approaches from interested parties. This process will seek to determine how to maximise shareholder value, given the recent outsider interest.

According to the release, there are no assurances that Cardno will pursue any transactions from the review.

Furthermore, the company has appointed Baird and Gresham Advisory Partners as its financial advisors. Meanwhile, Gilbert + Tobin will operate as Cardno’s legal advisor during the strategic review.

The outsider interest might indicate the market has been underpricing the Cardno share price.

Intega-resting news

It looks like Intega Group Ltd (ASX: ITG) is jumping on the strategic review bandwagon. Intega is another engineering services company that was demerged from Cardno in late 2019.

In an announcement of its own, the company advised it has also commenced a strategic review following increased activity and interest in the sector. Intega’s chairman, Neville Buch said:

Intega is performing well, and the business is ideally positioned to benefit from the strong pipeline of infrastructure investment in the US and Australia. The business has significant organic and inorganic growth potential, particularly in our core US markets as well as adjacencies. The board however believes that the business is undervalued by recent prices at which Intega shares have traded on the ASX…

Greenhill & Co have been engaged for financial advisory. While Intega has also gone with Gilbert + Tobin for its legal advisory.

Much like the Cardno share price, Intega shares are trading higher on the news. At the time of writing, the Intega share price is up 8.7% to 50 cents a share.

The post Cardno (ASX:CDD) share price skyrockets 30% on strategic review appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Regional Express (ASX:REX) share price edges lower on revised guidance
Why ‘value’ and ‘growth’ share categories are meaningless

Brickworks (ASX:BKW) share price jumps 8% on record property earnings
Amazon launches six-month $6 prescriptions to Prime members

PayPal taking fight to Afterpay (ASX:APT) and ASX banks

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!