Elders capital raising details

Elders (ASX:ELD) has detailed a capital raising plan to generate AUD 246 million. The initiative includes a 1 for 5.05 pro rata accelerated non-renounceable entitlement offer, with the retail component aiming to raise AUD 103 million. The raised funds will support the acquisition of Delta Agribusiness and other growth projects.

Elders' strategic acquisition and growth outlook

Elders is undertaking a substantial capital raising to acquire Delta Agribusiness and support strategic growth. The entitlement offer allows eligible retail shareholders to purchase new shares at AUD 7.85 each. The acquisition of Delta Agribusiness aims to expand Elders' geographic reach and enhance its capabilities in the agribusiness sector. The initiative aligns with Elders' strategy of growth through acquisitions, with anticipated synergies of AUD 12 million annually. The company forecasts earnings accretion and a manageable debt position post-acquisition. The offer closes on 9 December 2024, with settlement and allotment of new shares expected in mid-December.

Executive insights on Elders' strategy

The funds will be used to acquire Delta Agribusiness, covering transaction costs, and providing balance sheet flexibility for future growth opportunities.