AAC RAISES $56.3 MILLION

Written on the 11 May 2011

AAC RAISES $56.3 MILLION

AUSTRALIAN Agricultural Company (AAC) has raised $56.3 million via equity placement to pursue further growth.

The company will provide an offer to shareholders of up to $15,000 of shares through a Share Purchase Plan (SPP) to be capped at $30 million.

Proceeds from the equity raising will be used to provide financial flexibility to pursue growth while maintaining target - gearing levels of less than 40 per cent.

The company also expects to deliver EBITDA of between $60 and $65 million for 2011 with earnings tipped to be weighted primarily towards the second half.

Following the termination of a major food services contract and weak performance, the Chefs Partner component of the business will cease operations. As a result, a $4.2 million provision has been made in 2011F, primarily comprising an impairment of goodwill and other business finalisation costs.

CEO David Farley says the company completed the first year of a three year strategic plan in 2010 focused on transforming itself from a pastoral company into a vertically integrated beef producer and value added processor.

“Progress on strategic initiatives has continued in 2011 with the announcement of the acquisition of the Tipperary herd and agistment arrangements in March 2011,” he says.

“As part of the strategic plan, the company continues to review various vertical integration options including a proposed meat processing facility in the Northern Territory.”

AAC has a market cap of around $430 million. The company came in at No. 22 on Brisbane Business News’ 2011 Top 50 Public Companies list.

AAC shares are trading at $1.55 with no change.


Latest News

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter