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- Investment platform DomaCom (DCL) has seen a delay in its AustAgri Group purchase
- The company says the delay is related to AustAgri’s “paddock to plate” acquisitions, expected to be valued at around $300 million
- DomaCom expected the purchase to be completed this month, however, it is now expected in late March or early April
- On market close for the day, DomaCom is up 14.8 per cent and is trading at 7 cents per share
DomaCom (DCL) has seen a delay in its AustAgri Group purchase.
Last year, the investment platform announced it had entered into an implementation agreement to purchase AustAgri.
Under this agreement, a newly established DomaCom sub-fund would purchase all the issued shares in AustAgri.
AustAgri is an unlisted public company with operations spanning across dairy, fresh milk, milk powder and infant formula industries, as well as the export of livestock and chilled beef and lamb.
Notably, AustAgri is currently in the process of completing the purchases of “paddock to plate”, which is a series of businesses that range from farms, abattoirs, food processing and food distributions businesses, with the initial value of the assets expected around $300 million.
DomaCom expected the purchase to be completed this month, however, it has now been push-backed to late March or early April.
The delay relates to the significant property holdings within the AustAgri acquisitions.
“The AustAgri transaction involves a complex set of business and property
acquisitions and it is not surprising that delays have been encountered in some of these components,” CEO Arthur Naoumidis said.
“However, AustAgri is confident that settlement of the underlying businesses will occur and we are looking forward to welcoming the AustAgri business into the DomaCom Fund. This will put the company in a solid financial position and act as a strong catalyst to support our other exciting initiatives such as affordable housing, downsizer and Islamic equity mortgage,” he added.
On market close for the day, DomaCom is up 14.8 per cent and is trading at 7 cents per share.
