Elders proposal could lead to further consolidation of rural services sector
Elders is looking to acquire Australian Independent Rural Retailers.
Agribusiness company Elders is in a trading halt until Wednesday as its seeks to acquire Australian Independent Rural Retailers (AIRR).
Elders has entered into an agreement with AIRR to acquire 100 per cent of its shares through a scheme of arrangement for $10.85 a share.
The company is 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.
Elders managing director Mark Allison said acquiring AIRR would give Elders a national wholesale platform.
“By preserving continuity of AIRR’s key management team and independent identity through a light touch integration, AIRR will continue to deliver the benefits to its independent members,” Mr Allison said.
AIRR managing director Peter Law said the business’ key management team would continue unchanged through the acquisition process.
“We believe that partnering with Elders will add value to members, farmers and customers,” Mr Law said.
“We have grown consistently since establishment in 2006 and we are pleased to be continuing this growth with the support of Elders.”