Hot on the heels of rejecting a $430 million Arab takeover offer, big almond growing and nut processing business, Select Harvests, has launched a share market capital raising bid for about $65m.
Select has already placed 10.7m new shares worth about $45m with institutional investors.
It will offer more shares worth about $20m to existing shareholders in the Victorian-based orchard operation – Australia’s biggest almond business.
Harvest prospects rising
Select Harvests has more than 7000 hectares of almond plantations based on plantings in the Murray Valley, about half of which are on leased properties.
They yielded about 14,100 tonnes last year and will “theoretically” deliver about 15,800t next year.
By 2024 the company expects to have lifted its production by 53pc on current season output to 21,600t.
Select told the Australian Securities Exchange that market fundamentals for almonds remained strong with global consumption growing and US sales up 16pc in the past year, despite increased production.