This article is from the Australian Property Journal archive
AUSTRALIA’S largest almond grower, ASX-listed Select Harvest, has rebuffed the $430.6 million takeover proposal from Abu Dhabi-based sovereign wealth fund Mubadala Investment Company.
Select Harvest said its board concluded Mubadala’s proposal of $5.85 per share “significantly undervalued” the company, despite a share price drop of 40% in less than 12 months and its debt more than double in the 2017 financial year to $145.8 million.
The group has a portfolio of around 7,400 hectares of almond plantations through southern Australia, of which half is owned outright and the balance leased back.
It said Mubadala’s non-binding and “highly conditional” proposal was made on September 19th.
Select Harvest has also confirmed its $45 million institutional placement at $4.20 per share had come in “significantly oversubscribed”, according to managing director Paul Thompson, and a share purchase plan will net a further $20 million.
All proceeds will be used to reduce Select Harvests’ gearing from around 37.6% to 12.3%, or 52.5% to 24.4% including finance leases.
The 2017 financial year saw the group acquire Jubilee Orchards and take on a range orchard development costs.
Australian Property Journal
