Elders has made a $187 million scrip and cash offer for unlisted private whole buying group Australian Independent Rural Retailers
Elders 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, 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 acquisition values AIRR at $157 million on an equity basis and $187 million on an enterprise value basis.
Shares in Elders were worth $6.13 prior to entering a halt at Monday’s open.