Elders has made a $187 million scrip and cash offer for unlisted private wholesale buying group Australian Independent Rural Retailers.
The agribusiness announced on Monday it had entered a scheme of implementation to acquire 100 per cent of AIRR’s shares, with the half-scrip, half-cash bid already receiving the blessing of the takeover target’s board.
Elders on the acquisition trail Credit:Glenn Hunt
Elders, which remains in a trading halt, said it was funding the acquisition through a $137 million equity raising and the issue of $79 million of new Elders shares to AIRR shareholders as scrip consideration.
The $10.85 per share deal values AIRR at $157 million on an equity basis and $187 million on an enterprise value basis.
Elders said the acquisition will allow it to enter the wholesale rural services market with net synergies of $6.6 million to $9.33 million per annum to be gradually realised over the next two years.