Elders Limited Sees Share Price Decline After Capital Raising Completion

Highlights:

• Share Price Decline: Elders Limited (ASX: ELD) shares fell nearly 9% to $7.89 at the time of writing following the completion of its capital raising.
• Capital Raising Success: The company raised approximately $143 million by issuing new shares at a 9.2% discount, attracting strong institutional support.
• Strategic Acquisition: Elders is set to acquire Delta Agribusiness for $475 million, expanding its rural products and advisory services network across 68 locations.

Investor Response Following Capital Raise

Elders Limited (ASX: ELD), a leading agribusiness company, has experienced a near 9% drop in its share price, which currently stands at $7.89 at the time of writing. The decline follows the completion of the institutional component of its capital raising initiative. Despite the fall in share price, Elders reported strong support from both existing and new institutional shareholders, successfully raising approximately $143 million. The new shares were offered at $7.85 each, a 9.2% discount to the company’s previous closing price.

Strategic Acquisition of Delta Agribusiness

The capital raise comes as Elders prepares to acquire 100% of the shares in Delta Agribusiness, an acquisition valued at $475 million. Delta Agribusiness is a significant player in the rural products and advisory services sector, operating across 68 locations with approximately 40 independent wholesale customers. The acquisition is expected to strengthen Elders' position in the agribusiness sector and expand its reach, particularly in providing critical services and products to rural Australia.

Elders Positioned for Growth

While the capital raise has caused short-term volatility in its share price, the acquisition of Delta Agribusiness positions Elders for long-term growth. The deal allows the company to further diversify its service offerings and consolidate its presence in a competitive market. As the integration progresses, Elders remains focused on leveraging its enhanced capabilities to meet the growing demands of the agricultural sector.

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