PriceSensitive

Vitalharverst (ASX:VTH) unitholders vote in favour of Macquarie acquisition

Market News, Real Estate
ASX:VTH
29 June 2021 05:00 (AEST)

Image: Fin News Network

After a drawn-out bidding war between Macquarie and Roc Partners, Vitalharvest (VTH) unitholders have voted in favour of the Macquarie Agricultural Funds Management (MAFM) proposed acquisition.

The offer of 1.33 per unit or $357.35 million under an asset sale alternative was matched by Roc Partners in early June, in what would be the final round of offers that stretch to February this year.

MAFM’s first offer came all the way back in November 2020, a proposed $1 per unit or $300 million for the assets offer.

Roc first entered the fray in February, offering $1.08 per unit, or $314.8 million for the assets, and the two have been trading blows ever since, with MAFM eventually coming out on top after securing  20.9 per cent of the total number of VTH units on issue in early June.

Over 98 per cent of unitholders voted in favour of the acquisition at $1.33 per unit, with the scheme to be presented to the NSW Supreme Court on July 1.

“We are very pleased with the outcome for VTH unitholders,” Vitalharvest Freehold Trust RE director and Perpetual Corporate Trust group executive Richard McCarthy said.

“Since November last year when the initial offer was made public after extensive negotiations, unitholders have experienced a ~35% uplift in the value of their units and a ~71% increase from the trading price before the offer was announced.

“As an independent responsible entity, our focus at all times is to act in the best interests of unitholders. Having worked tirelessly for more than eight months to thoroughly assess 19 offers and counter-offers and to arrive at today’s outcome which has been overwhelmingly supported by unitholders, is a very pleasing result.”

If the court provides the second judicial advice (to which the acquisition is subject), VTH proposes to lodge the orders of the court to the Australia Securities and Investment Commission, at which time the scheme will become effective.

Shares in VTH are expected to be suspended from trading on ASX from the close of trading on July 1, with the scheme implemented on July 12.

The company recently announced its intention to make a full-year distribution to unitholders of 2.5 cents per share, however with the acquisition now approved, unitholders will receive $1.305 per unit in scheme consideration and $0.025 as the full-year distribution.

Vitalharvest shares rounded off the day of trading up 0.38 per cent to sit at $1.32.

Related News