Futuris to acquire Integrated Tree Cropping with 93% shares

Adelaide-based Futuris Corporation Ltd today announced its intention to compulsorily acquire West-Perth based company Integrated Tree Cropping Ltd, after attaining a relevant interest in 93 per cent of the company.

Futuris, through its fully owned subsiduary Hatmore Pty Ltd, made an off-market bid for more shares in the company on May 26 this year, with the offer closing on Friday, June 30. It had previously been a major shareholder in the company, holding 55 per cent of shares before the bid.

The company will issue compulsory acquisition notices in the coming week.

The offer was for three Futuris shares for every five ITC shares held, or $1.30 cash, payable within seven days of acceptance. The share offer represented a 30 per cent premium over ITC's price of $1.04 immediately prior to this announcement and 25 per cent over the three-month volume weighted average price of $1.08 per share to May 10 2006.

A statement issued by Futuris said the progress and potential of ITC had not been fully reflected in the company's share value, which had been affected by uncertainty about regulatory change and about its capacity to meet the capital requirements of its business growth and corporate opportunities. The acquisition was to give ITC an ownership structure with the resources to better meet its growth requirements.