Elders Ltd (ASX: ELD) shares have copped a battering lately but shareholders will be hoping a Federal Court decision yesterday paves the way for future growth.
Elders is an agriculture business which can trace its history all the way back to 1839. Elders creates specialised products and services, tailor-made to meet the needs of its various clients. It offers rural services, financial planning, real estate, insurance and home loans.
Takeover Gets Tick Of Approval
The Federal Court has given the green light for Elders to acquire Australian Independent Rural Retailers, otherwise known as AIRR Holdings Ltd, which is a private company. The court decision will be formalised when the necessary paperwork is lodged with the Australian Securities and Investment Commission (ASIC) today.
Shareholders of both companies had already approved the acquisition and the deal is expected to be finalised by the middle of next month.
AIRR owns a network of farming supplies stores whilst also acting as a wholesaler to over 2,000 independent rural retail stores.
It is hoped that the acquisition will expand the company’s reach in rural Australia whilst also providing cost synergies and driving further efficiencies.
The Elders share price is down nearly 33% from its 12 month high and is starting to look more attractive as a result. With a fully franked dividend yield of 3% Elders is one under-the-radar company that might be worth further investigation.
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At the time of publishing, Luke has no financial interest in any companies mentioned.
