Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/4285" target="_blank" data-smartkarma-citation="entities:4285:1">Ruralco Holdings (RHL AU)</a> has <a href="https://www.asx.com.au/asxpdf/20190227/pdf/4430v0cv3wwr8q.pdf" target="_blank">announced</a> it has entered into a Scheme Implementation Deed in which <a href="https://www.smartkarma.com/entities/27261" target="_blank" data-smartkarma-citation="entities:27261:1">Nutrien Ltd (NTR CN)</a> has agreed to take Ruralco private at $4.40/share - a 44% premium to last close and the one-month VWAP. The Offer values Ruralco at A$469mn and an enterprise value of $615mn.
A fully franked special dividend of A$0.90 will reduce the Scheme consideration. An interim dividend of A$0.10 will be added.
The Scheme is subject to shareholder approval, and approval from the ACCC and FIRB. Previous commentary bv ACCC's Rod Sims would indicate this regulatory approval will not be an issue.
Ruralco's directors unanimously recommend the Offer in the absence of a superior proposal and a favourable independent expert opinion.
Concerning shareholder reception to the Scheme, Ruralco's CEO Travis Dillon <a href="https://www.brisbanetimes.com.au/business/companies/global-agri-giant-nutrien-on-track-to-buy-australia-s-ruralco-20190227-p510n6.html" target="_blank">said</a> "The feedback we've had ... with all stakeholders, but including our shareholders (has been) overwhelmingly positive."
This is a pretty clean deal and the gross/annualised spread of 1.4%/4.1%, assuming late June completion, reflects this.
A counter offer from <a href="https://www.smartkarma.com/entities/10040" target="_blank" data-smartkarma-citation="entities:10040:1">Elders Ltd (ELD AU)</a> cannot be ruled out. But given its comparative size, Nutrien would be the likely winner in such a scrap, potentially reducing the likelihood of Elders making an offer.

Ruralco Holdings (RHL AU) has announced it has entered into a Scheme Implementation Deed in which Nutrien Ltd (NTR CN) has agreed to take Ruralco private at $4.40/share - a 44% premium to last close and the one-month VWAP. The Offer values Ruralco at A$469mn and an enterprise value of $615mn.
A fully franked special dividend of A$0.90 will reduce the Scheme consideration. An interim dividend of A$0.10 will be added.
The Scheme is subject to shareholder approval, and approval from the ACCC and FIRB. Previous commentary bv ACCC's Rod Sims would indicate this regulatory approval will not be an issue.
Ruralco's directors unanimously recommend the Offer in the absence of a superior proposal and a favourable independent expert opinion.
Concerning shareholder reception to the Scheme, Ruralco's CEO Travis Dillon said "The feedback we've had ... with all stakeholders, but including our shareholders (has been) overwhelmingly positive."
This is a pretty clean deal and the gross/annualised spread of 1.4%/4.1%, assuming late June completion, reflects this.
A counter offer from Elders Ltd (ELD AU) cannot be ruled out. But given its comparative size, Nutrien would be the likely winner in such a scrap, potentially reducing the likelihood of Elders making an offer.

Nutrien's Move On Ruralco Makes Agronomic Sense

<a href="https://www.smartkarma.com/entities/10040" target="_blank" data-smartkarma-citation="entities:10040:1">Elders Ltd (ELD AU)</a> <a href="https://www.asx.com.au/asxpdf/20180710/pdf/43wf3fnr15w2g5.pdf" target="_blank">announced</a> it has not "made any definite proposal" to acquire <a href="https://www.smartkarma.com/entities/7479" target="_blank" data-smartkarma-citation="entities:7479:1">Pgg Wrightson Ltd (PGW NZ)</a>.
Speculation in PGW has gathered pace since earlier this year when New Zealand's <a href="https://www.linz.govt.nz/overseas-investment" target="_blank">Overseas Investment Office</a> (OIO) began <a href="https://www.nzx.com/announcements/312968" target="_blank">investigating</a> whether Agria Corporation, the Chinese company which owns 50.22% of PGW, is of "good character". Should Agria fail that test, its stake in PGW will likely be in play.
There has only been one instance of an investor's rights being removed by the OIO: Charles…

Elders Ltd (ELD AU) announced it has not "made any definite proposal" to acquire Pgg Wrightson Ltd (PGW NZ).
Speculation in PGW has gathered pace since earlier this year when New Zealand's Overseas Investment Office (OIO) began investigating whether Agria Corporation, the Chinese company which owns 50.22% of PGW, is of "good character". Should Agria fail that test, its stake in PGW will likely be in play.
There has only been one instance of an investor's rights being removed by the OIO: Charles…

New Zealand

PGG Wrightson Limited is a farm service organization on the South Island, operating in Otago and parts of Southland. The Company's operations include wool scouring and dumping, wool and livestock trading, farming financial services, residential real estate and retail farming merchandising, which includes animal health and nutrition and pasture improvements.

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PGG Wrightson (PGW NZ)

Nutrien's Move On Ruralco Makes Agronomic Sense

Ruralco Holdings (RHL AU) has announced it has entered into a Scheme Implementation Deed in which Nutrien Ltd (NTR CN) has agreed to take Ruralco...

David Blennerhassett

PGW And A Question of Character

Elders Ltd (ELD AU) announced it has not "made any definite proposal" to acquire Pgg Wrightson Ltd (PGW NZ). Speculation in PGW has gathered pace...

David Blennerhassett

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