Weekly Agribusiness News Recap

This article is bought to you by Mulcahy & Co Agri Solutions and SST GPS.

By Georgia Devenish - Agricultural Research Analyst at JLL

Nuchev, an Australian health and nutrition solutions company, listed on the Australian Securities Exchange this week. Nuchev was founded by Ben Dingle, co-founder of New Zealand dairy company, Synlait. Dingle owns 46.2 percent of Nuchev's 45 million shares after an initial public offering was completed as part of the listing and remains as Chief Executive Officer. Nuchev currently sells its product into Australia, China and Hong Kong. The company sources its goat milk powder from the Netherlands.

More than 82 percent of Bellamy's Organic shareholders have voted in favour of the China Mengniu Dairy Company $1.5 billion takeover. 99.23 percent of votes were cast in favour at a meeting on 5 December 2019. Mengniu will acquire 100 percent of Bellamy's at $12.65 per share, with a special dividend of a further $0.60 per share to be paid before the takeover.

Bubs Australia has raised $30 million in capital via a placement and seeks to raise another $5 million through a share purchase plan. The placement was priced at 95 cents per share, which represented an 11.8 percent discount to Bubs' five-day volume weighted average price. The bulk of the funds raised will be used to pay out its purchase of Australian Deloraine Dairy. The dairy is just one of just 15 licensed canning facilities in Australia that meets regulatory import conditions into China and was bought in April for $25 million and almost 15.4 million Bubs shares worth $10 million. The company is looking to China and south-east Asia for increased distribution of its baby formula, toddler snacks and non-infant goat milk extensions, such as drinks for adults and seniors.

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Wattle Health Australia (WHA) has entered into a 10 year agreement with Chemist Warehouse which will see a range of their products in 450 retail stores across Australia, New Zealand and China. Chemist Warehouse is the biggest pharmacy retailer in Australia and has significant presence in Alibaba's Tmall Global online sales. As part of the agreement, Chemist Warehouse receives 20 million WHA shares, subject to the retailer meeting certain marketing conditions. Wattle Health Australia is in the process of raising $62 million from existing shareholders to help pay for the Blend and Pack plant in Melbourne.

Namoi Cotton has announced that it will cut 35 percent of its workforce across its New South Wales and Queensland network. The decision comes as part of a drought induced restructure program which began last month. The major organisational restructure will see the cotton ginning and marketing company save about $4.5 million in annualised labour costs.

An $11.6 million pineapple processing plant is being developed on Queensland's Capricorn Coast at Yeppoon. The facility is being developed by Hidden Valley Harvest in conjunction with the Federal Government which is providing $5.808 million in funds to the project. The 2,000 square metre plant is expected to be operational by June 2020.

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