Rural services company, Elders
(ASX:ELD) has entered into a scheme implementation deed with Australian Independent Rural Retailers (AIRR) to acquire 100 per cent of AIRR’s shares on issue by way of a scheme of arrangement for A$10.851 per share.
The Acquisition consideration comprises 50 per cent cash and 50 per cent Elders scrip with a mix and match facility provided to AIRR shareholders.
The Scheme has been unanimously recommended by AIRR’s Board of Directors in the absence of a superior proposal.
Elders says the acquisition will provide it with entry to the wholesale rural services market which enables a new growth channel and is consistent with Elders’ Corporate Acquisition Principles.
Elders is funding the acquisition through a A$137 million equity raising and the issue of A$79 million of new Elders shares to AIRR shareholders as scrip consideration.
Elders
(ASX:ELD) is currently in a trading halt and last traded at $6.13.
