Ridley (ASX:RIC) is set to acquire Dyno Nobel's (ASX:DNL) fertilizer distribution business for AU$300 million, with the option to acquire its Geelong North Shore property for AU$75 million, according to a Monday filing with the Australian bourse.
The acquisition will be funded through new debt facilities, a AU$125 million equity raising through an entitlement offer, a AU$90 million pro rata accelerated, non-renounceable entitlement offer, a AU$35 million institutional placement, and a AU$50 million vendor note issue to Dyno Nobel, the filing said.
The company also secured supply from the holder of the contract with Perdaman Chemicals and Fertilizers of at least 700,000 tonnes of urea per annum post-commissioning of the Perdaman urea plant, expected by 2028, per the filing.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.