lemon tree ripens
Photo – Canva. Vitalharvest, a citrus and berry farm property company receives takeover bid.
  • Macquarie equals Roc Private Equity's bid at $1.08
  • VTH announced "engagement of Roc has ceased"
  • Everything pending an unitholder meeting next week

Recap

The sale of Vitalharvest (ASX: VTH) has been on the cards for some time now, The Property Tribune previously reporting the gap in the market left by Vitalharvest could be filled by a Primewest’s move into the agricultural property sector.

Macquarie Agriculture Fund had its hat in the ring early on, Roc Private Equity Pty Ltd, part of Roc Partners, made a bid for 100% of Vitalharvest late on 25 February 2021 at $1.08 per unit, only announced the day after.

Exactly a week later Vitalharvest announced to the ASX, albeit it wasn’t “official” yet, that they were warming considerably to the offer from Roc Private Equity.

In addition to the statement, VTH also noted they would also “consider any response from Macquarie.”

The warming to Roc seemed fairly firm as Vitalharvest noted in its statement that the company “… has made this determination and is able to negotiate with Roc with a view to agreeing a legally binding Superior Proposal,” of course as previously noted the move at the time was not yet final.

Take five

Vitalharvest announced to the market this morning a pause in trading, closing the previous day out at $1.08.

The pause of trade occurred shortly before VTH announced to the market Macquarie had increased its takeover bid for Vitalharvest, raising their offer to $1.08 per unit.

Macquarie’s bid price now equals the offer made by Roc Private Equity back in February.

The take over is” by way of trust scheme”, and it was also announced that Macquarie “has also agreed to extend the waiver it granted previously to permit the payment of a distribution to unitholders of 2.5c per VTH unit from rent received for the half year ended 31 December 2020 subject to certain conditions,”.

Board recommendations

In the statement to the ASX, the Board of Vitalharvest “unanimously” recommended that unitholders vote in favour of “the Trust Scheme, in the absence of a Superior Proposal and subject to the Independent Expert continuing to conclude that the Trust Scheme is fair and reasonable to … VTH unitholders”.

The Board also unanimously recommended unitholders vote in favour of the Asset Sale.

Additional information

Vithalharvest also noted there were other “minor amendments” to the Scheme Implementation Deed, including a break fee increase to $2M, up from $1.85M.

The company also noted Macquarie’s “matching right will apply at the point where VTH RE proposes to enter into a binding agreement in respect of a Superior Proposal; and VTH RE is required to provide additional details to MAFM in respect of an actual, proposed or potential Alternative Transaction including any conditions to the funding of the Alternative Transaction.”

The timeline looking forward sees a unitholder meeting next week, and VTH announced that the engagement with Roc has ceased.




You May Also Like

Westpac sees rates hitting 4.1 per cent and property prices falling further

Westpac said, “2023 will be another challenging year, particularly as the RBA continues to ratchet interest rates higher.”

Home loan hacks: four way to save money on your mortgage

With interest rates expected to keep rising, Compare Club has tips to ease the mortgage pain.

CoreLogic’s guide to navigating a looming ‘fixed-rate cliff’

Many borrowers will feel mortgage pain when they next refinance

How much does it cost to move house?

From cleaning fees to moving services, the costs of moving houses can add up fast

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.