New Zealand Rural Land Company Limited (NZX.NZL) today announced an accelerated pro rata renewable entitlement offering to raise approximately $20.38 million (Offer). The net proceeds of the offering will be used to finance the acquisition of two other dairy assets, Argyle Downs and Greenhill.
NZL Chairman Rob Campbell said: “The acquisitions represent a continuation of NZL’s strategy of expanding its portfolio of high quality rural land assets which after the acquisitions will include approximately 11,710 hectares of dairy farms in Canterbury, Central Otago and Southland. . These assets are all backed by triple net leases with CPI-linked rent adjustments, allowing NZL to be well positioned in an inflationary environment.
ACQUISITIONS
NZL has entered into agreements to acquire the following properties:
• Argyle Downs Farm: A large 564 hectare dairy farm located in Southland, New Zealand, which will be leased to a new tenant with CPI related rent adjustments for an initial term of 11 years. The tenant is run by experienced operators with significant farming experience in New Zealand.
• Greenhill Farm: a 366 hectare dairy farm located in Southland, New Zealand, which will be leased to a new tenant with CPI-linked rent adjustments for an initial term of 10 years. The tenant has a track record of operating experience and good performance as well as a strong balance sheet supporting the lease, giving NZL confidence in the tenants’ ability to farm in the area and comply with local regulations.
Total purchase: NZ$29 million
TO OFFER
The offer offers all eligible shareholders the opportunity to purchase 1 new share (New Shares) for every 5 existing shares held at 5:00 p.m. New Zealand time on the record date of Friday, June 10, 2022, at a price of NZ$1.05 per new share (Application Price).
The cross price reflects a 6.3% discount to the last close of Tuesday, June 7, 2022 of NZ$1.12, a 5.3% discount to the theoretical ex-duty price of $1.11 NZ and a 22.8% discount to net asset value per share (as of December 31, 2021).
The Offering is being conducted in two parts – an offering to eligible institutional shareholders (Institutional Right Offering) and an offering to eligible retail shareholders (Retail Right Offering).
The Institutional Right Offering has been accelerated and will be conducted today, with confirmations due by 5:00 p.m. (New Zealand time) on Wednesday 8 June 2022.
The Retail Rights Offering will open on Monday June 13, 2022. Eligible retail shareholders will have until 5:00 p.m. (New Zealand time) on Thursday June 23, 2022 to subscribe for New Shares under the Rights Offering. by retail.
Additional information regarding the Offer is contained in the Offer Document and investor presentation accompanying this announcement. The investor presentation contains important information, including key risks and foreign selling restrictions relating to the offering.
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