ITC looks at float after Futuris adds support
Agribusiness investment group Integrated Tree Cropping (ITC) plans to float on theASXas early as next month and will aim to raise an additional $30 million through a rights issue post-listing.
However, before applying to list, ITC is rationalising its businesses by buying out the shareholders in associated company ITC Timberlands.
ITC executive chairman Tony Davies says this company owns the group’s land interests and has 350 preference shareholders on its register.
“ITC intends to offers to acquire the interests of these shareholders in return for shares in ITC. This should result in ITC increasing its capital and shareholder base,” he says.
Davies says the terms of the offer are still being finalised, but the deal is expected to be completed by the end of February.
The renounceable rights issue will be used to repay all the company’s debt and fund future expansion, he says.
ITC’s existing loan facility, drawn to $23.5 million, has been provided by Futuris, an agribusiness and manufacturing listed company, which owns 50 per cent of the West Australian tree farmer.
Futuris chief executive officer Les Wozniczka says his company supports the deal in a statement to the ASX. However, the restructuring and rationalisation of ITC is subject to Futuris board approval and extending the loan facility by 30 days beyond its expiry date, which is the end of this month.
Futuris has also agreed, subject to board approval, to underwrite ITC’s rights issue. Davies says this is important to guarantee the success of the move, however, it will also be seeking a broker to provide external underwriting.
ITC is planning to launch another timber managed investment scheme shortly, he says.
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