STIRLING: Duxton Farms Ltd (ASX: DXF) unveiled plans Thursday for a strategic merger with four private agricultural companies, a fully underwritten institutional placement, and a special dividend following the recent sale of its Kentucky property.
Key Highlights:
- Merger: Duxton Farms will acquire four companies specializing in dried fruits, orchards (apples), apiary (bees), and walnuts. The merger aims to diversify its portfolio, adding $298 million in gross assets, 180,000 hectares of land, and 32,000 megalitres of water entitlements on a pro forma basis.
- Placement: The company seeks to raise approximately $4 million through a share placement priced at $1.25 per share, a 7.4% discount to its last traded price. Proceeds will fund the merger’s cash component, development projects, and water entitlements.
- Special Dividend: Shareholders will receive an 85% franked dividend of $0.24 per share, totaling $10 million, following the $38 million divestment of the Kentucky property in April.
The merger accelerates Duxton Farms’ expansion into higher-yield agricultural sectors, including permanent horticulture and viticulture. The combined entity will operate across multiple Australian states, leveraging synergies in land, water, and operational expertise.
The merger is conditional on shareholder and regulatory approvals, with completion expected by September 2025. The placement and dividend reinvestment plan (DRP) are set to conclude in July and August, respectively.