Originally Posted by
Nigel
Details out today about cap raise and $2.5mil investment for a 50% interest in New Zealand Rural Land Limited Partnership.
The new partnership will be the manager of New Zealand Rural Land Company Limited (NZRLC), a new entity that will acquire rural land under a landlord model, whereby the underlying rural land will be leased to high-quality farming operators. NZRLC is planning an IPO for later this month of up to $150 million and list on the NZX Main Board in December 2020.
The announcement describes the new venture as "an incredibly exciting and pivotal opportunity for Allied Farmers."
"Our strategy is to 'be the major solution provider to agricultural producers, growing value for those producers and our investors'. Our NZ Farmers Livestock subsidiary is the foundation upon which we have built and delivered that strategy, and this investment enables diversification in a manner that is complementary to our core values and activities."
"From our deep understanding of the rural sector built over more than 100 years, we know there is compelling long-term value in owning rural land, and
we can see the benefits for farm operators wishing to expand their operational platforms in a capital efficient manner. NZRLC will be a capital-providing partner for New Zealand's highly-skilled and productive food producers."
As flagged in the earlier announcement, ALF has today outlined a cap raise for existing shareholders. This additional capital (to be raised at 50c) will be
raised through a 1:3 renounceable rights issue to existing shareholders, and (assuming shareholder approval) a further placement to existing holders.
Will be interesting to see if a few more people jump on board to get access to the 50c shares.
The company is already profitable and focused on continued growth.