Australian food group SPC Ltd is confident that its A$81m (US$40.5m) cash and stock merger deal with Ardmona Foods Ltd is on track, and that the details of its proposed capital raising set will be finalised within a fortnight.
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“The directors remain confident that the merger will be earnings per share positive from the first year of operation,” SPC told the Australian Stock Exchange.
SPC is also remains confident of securing backing for the merger from the Australian Competition and Consumer Commission (ACCC), which is expected to rule on the deal early in November.
The deal will see SPC pay A$13.5m in cash and another A$67.5m worth of shares to central Victoria-based Ardmona, whose shareholders mainly consist of fruit growers. The resulting company will be called SPC Ardmona Ltd, according to Industry Search, and act as a major play in the Australian food industry, with annual sales over A$430m and an expected market capitalisation in excess of A$150m.
Last month, SPC explained that funding for the acquisition would come from a capital raising for an undisclosed amount.
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