Australia’s largest almond grower and processor is about to get that little bit larger.
It is understood ASX-listed Select Harvests is poised to acquire three almond farms and was readying a $120 million capital raising on Thursday evening to finance the acquisition.
Sources said the raising would be structured as a $40 million placement and $80 million accelerated non-renounceable entitlement offer.
It is understood the raising would be priced at $5.20 a share, which represented a 4.8 per cent discount to Select Harvests’ $5.46 last close.
Bell Potter was underwriter to the raising, while PAC Partners was a joint lead manager and Select Equities was pitching in as a co-manager. Select Harvests was being advised on the deal by Kidder Williams.
It is understood the acquisition of the almond farms – located on the NSW/Victorian border – would increase Select Harvests’ annual production by 4,600 tonnes in its first full year, and increase its total farm size to 9,300 hectares from 7,700 hectares.
The $538 million company was expected to make an announcement to the ASX about the acquisition on Thursday evening and the raising was pegged to launch on Friday morning.