Wesfarmers picks up Greencap for $21m

UPDATE 2.50pm: Greencap will become part of Wesfarmers Industrial and Safety as part of a $21 million takeover of the listed risk management consultancy group.

Greencap shareholders will receive eight cents cash a share under a scheme of arrangement agreed to by the two parties.

Greencap chairman Byram Johnston said the company's board believed the proposal reflected compelling value for shareholders, delivering cash proceeds in an uncertain economic environment at a significant premium.

Wesfarmers Industrial and Safety managing director Olivier Chretien said Greencap represented an attractive bolt-on acquisition and further diversified the company's existing portfolio of businesses.

Wesfarmers Industrial and Safety is a wholly owned subsidiary of Wesfarmers.

Greencap shares closed up 1.5 cents, or 25 per cent, at 7.5 cents.