One of Australia's more prominent soil carbon project enterprises is up for sale, or at least seeking fresh capital to support its expansion.
Offers to acquire up to 100 per cent of the issued shares in Australian Soil Management are on the table by way of a two stage non-binding indicative offer process.
Established in 2011, ASM is the brainchild of its founder, Dr Greg Bender, who has had 43 years experience in agribusiness and soil biology.
He set about helping farmers "remove 1 billion tonnes of carbon dioxide (CO2) from the atmosphere" and has taken the company to an industry leading position in the fast growing carbon sequestration project management space.
ASM's current geographic focus is spread across eastern Australia with extensive research trials undertaken with farmers since 2012.
Led by Dr Bender, Norman Marshall and Chris Main, it is active across about 25 carbon projects registered with Australia's Clean Energy Regulator, and has a pipeline of projects still being developed.
ASM would provide any incoming investor with direct exposure to Australian Carbon Credit Units (ACCUs) with contracted success fees to be paid in the form of ACCUs.
The investment offer, Project Alpha, is being managed by Oxley Capital Partners which specialises in transaction services including selling food and agribusiness assets and raising alternate forms of debt and equity capital to support growth or transformation.
Managing director, Ben Craw, said ASM's Project Alpha represented "a compelling opportunity" to invest into or partner with a business with a demonstrated track record in natural capital.
It was establishing carbon projects for farmers and landowners and had a significant pipeline of projects and growth initiatives.
"An incoming investor will access an established platform underpinned by best in class management with direct exposure to ACCUs," he said.
ASM's founders and members of its executive team were also personally invested in the natural capital sector, operating registered soil carbon projects across their own farming interests.
Chief executive officer, Chris Main, said the business was seeking a strategic partner which could help ASM execute its short and long term growth initiatives.
The company wanted to take advantage of "major tailwinds in the natural capital sector".
Oxley Capital's Mr Craw said ASM's organic growth to date was due to its alignment and unique partnership structure.
Its carbon project proponent provided a high integrity success fee model with farmers and landowners.
Significant scope existed to invest in growth initiatives so ASM could scale up its existing footprint.
Relevant due diligence documentation was available for qualified parties through Oxley Capital Partners.
Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
