This article is from the Australian Property Journal archive
ROC Private Equity has lobbed a takeover bid for Vitalharvest Freehold Trust, scuppering rival Macquarie’s hopes of a smooth acquisition of the berry and citrus farm owner.
The two-pronged offer would first see all Vitalharvest units acquired for $1.08 each by way of a trust scheme. If the required 75% of shareholders do not approve, then Roc would offer to acquire all of Vitalharvest’s assets for $314.8 million. This would require a simple majority approval.
Macquarie Infrastructure and Real Assets put forward a fully-funded bid in November for $1 per unit or to acquire the trust’s assets for $300 million. That was set to be voted on by shareholders on March 4th.
Vitalharvest owns blueberry, raspberry and blackberry farms in New South Wales and Tasmania, and citrus properties in South Australia. All properties within the $305 million portfolio are leased until 2026.
Vitalharvest is managed by Primewest, which paid $10 million last year to acquire its external manager goFARM Asset Management, while taking an 11.8% stake that has since been built up to nearly 20%.
Primewest appeared set to use the Vitalharvest Freehold Trust that it took over during winter as the springboard for a listed agricultural trust, as it looked likely that Vitalharvest would be taken over by Macquarie – a play supported by Primewest. Primewest is now eye offing a $350 million float of its agricultural trust and is on the lookout for almonds, tomatoes and vineyards assets.
Similar to the Macquarie offer, Vitalharvest would be permitted to pay a 2.5c distribution.
The interim distribution is below the previous year’s 3.25c.
Vitalharvest’s half year results showed revenue increased from $9.45 million to $13.8 million, and profit from $14.32 million to $15.95 million.
Funds from operations increased to $9.72 million, up from $6.71 million, and to 5.26c from 3.62c on a per security basis.
