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Rural Funds Group (ASX:RFF) to raise $100m for acquisitions
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  • Rural Funds Group (RFF) raises funds for macadamia developments, cattle acquisitions and accretive water transactions.
  • The company is aiming to raise in a $100m fully underwritten 1-for-8.4 accelerated non-renounceable entitlement offer
  • RFF has enlisted the help of stockbrokers Bell Potter, Wilsons and UBS for the raising with an offering price of $2.47 per share
  • RFF said the FY22 forecast adjusted funds from operations (AFFO) is 11.6 cents per unit
  • Shares in Rural Funds Group are sitting at $2.60 in a trading halt

Rural Funds Group (RFF) has announced an equity raising for macadamia developments, cattle acquisitions and an accretive water transaction.

The company is aiming to raise in a $100m fully underwritten 1-for-8.4 accelerated non-renounceable entitlement offer.

RFF has enlisted the help of stockbrokers Bell Potter, Wilsons, and UBS for the raising with an offering price of $2.47 per share, which is a five per cent reduction from the stock's previous close price of $2.60.

In FY20 and FY21 RFF acquired $104 million of land and water in Rockhampton, Bundaberg and Maryborough for the development of 5000 ha of macadamia orchards.

The equity raise is to provide capital for the development of 1000ha of macadamia orchards and will take up $85 million of the raise.

Rural Funda Management, in conjunction with several corporate lessees, are seeking to acquire additional cattle properties.

The company also said it has identified cropping opportunities with significant development potential.

The other purpose of the equity raising is to provide capital for the acquisition of up to 8338ml of water entitlements in the Lower Murrumbidgee Groundwater area for $38.4 million which are leased to a private farming company for five years.

RFM and Managing Director David Bryant collectively hold approximately 4.5 per cent of RFF units on issue and have committed to take up a minimum of $1.5m and may take up more of their entitlement.

RFM Chairman Guy Paynter and Director’s Michael Carroll and Julian Widdup hold 0.6 per cent of RFF units on issue and have committed to take up their entitlement in full amounting to approximately $600,000.

RFF said the FY 22 forecast adjusted funds from operations (AFFO) is 11.6 cents per unit with AFFO accretion to be driven by the finalisation of macadamia lessee arrangements and additional acquisitions.

Shares in Rural Funds Group are sitting at $2.60 in a trading halt.

RFF by the numbers
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