AFR: Bell Potter, UBS, Wilsons line up for Rural Funds Group...

AFR:
Bell Potter, UBS, Wilsons line up for Rural Funds Group raising

Stockbrokers Bell Potter, UBS and Wilsons are expected to spearhead an equity raising for ASX-listed farms owner Rural Funds Group, as first reported by Street Talk on Wednesday.

The deal has been structured as an entitlement offer to raise $150 million with shareholders expected to be offered about one new share for every three they already owned.

It's understood the offer price has been pegged at $1.95, which would represent a skinny 5.8 per cent discount to the last close.

The deal is slated to launch on Thursday morning.

Sources said deal-hungry Rural Funds was raising to fund the acquisition of five feedlots attached to abattoirs of the country's biggest meat processor, JBS Australia, via a $125 million sale-and-leaseback agreement.

The proceeds will also be used to fund the company's acquisition of Comanche, a 7600-hectare breeding and backgrounding property near Rockhampton in central Queensland for $15.7 million.

It is understood Rural Funds is working with Bells, Wilsons and UBS on the deal - which is the same line up it used when it last raised capital in June 2017.

Rural Funds shares last closed at $2.07 each. It last raised at $1.70 this time last year.

Rural Funds is a diversified property trust with a $529 million market capitalisation. It owns a range of agricultural assets that are leased to operators.

Its properties include sites used for almond, poultry and cattle farming.

The company acquired Comanche from Geoff and Dalrae Shaw at auction. It includes nine kilometres of Fitzroy River frontage and comes with an 864-megalitre water allocation plus extensive cattle infrastructure.

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