Elders completes $137 million capital raising for AIRR takeover

Elders has completed its $137 million capital raising exercise to provide funds for the takeover of Australian Independent Rural Retailers.

Elders has successfully raised $137 million to help pay for Australian Independent Rural Retailers.

ELDERS Limited has completed its $137 million capital raising to help pay for the takeover of Australian Independent Rural Retailers.

The company had raised $100 million from institutional investors in mid-July and sought $37 million from retail shareholders.

But retail investors only took up 87 per cent took up their entitlements, leaving a shortfall of about $4.3 million to be allocated to underwriter of the offer, Macquarie Capital (Australia) Limited.

The new shares will be issued to successful retail investors tomorrow and Monday in time for commencement of trading on Tuesday.

Elders announced it was buying AIRR on July 15 for $157 million.

That was made up of an issue of $79 million in Elders shares plus an equal amount in cash from the capital raising offer.

The residual funds out of the $137 million capital raising will cover administration costs of the equity deal and to pay off some of Elders’ pre-existing debt.