Ruralco's water bid

13 Feb, 2014 09:50 AM
Water has been a strategic focus for Ruralco for some time

UPDATED: RURALCO Holdings Limited has entered into a share sale deed to acquire 100 per cent of Total Eden Holdings Pty Ltd from Anchorage Capital Partners for a purchase price of $57.4 million.

Total Eden is a retailer of sustainable water solutions with specialised capabilities in the fields of design, construction and operation of end-to-end water systems. The share sale deed is expected to complete on February 28.

“Water has been a strategic focus for Ruralco for some time and Total Eden provides an excellent platform for future growth in this sector," Ruralco managing director John Maher said.

"It is clear that water scarcity and security will be key issues over the coming years and efficient infrastructure and management of this resource will be key to our customers’ prosperity.”

The company has informed the ASX that it will be conducting a fully underwritten equity raising offer to raise approximately $43.8m, which will comprise an accelerated non-renounceable pro rata rights issue to be offered to eligible Ruralco shareholders.

Eligible shareholders can apply for one new ordinary share for every 4.3 ordinary shares held on the record date - February 18 - at an offer price of $3.00 per new share.

This follows hot on the heels of a $25 million capital raising initiative to expand services and further grow Ruralco's stake in grain and water in mid-December.

Ruralco endured a 53 per cent fall in net profit after tax to $5.7 million at the end of September 2013.



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Forward selling grain is always a risky proposition and we are now seeing further evidence of
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A big old debt bomb globally. The farm sector will not be immune.
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budget update the other day ... we will be going backwards after we have banked this record