Elders chief executive Mark Allison says the risk of "opportunistic" takeover bids for the 175-year-old agribusiness company from suitors including private equity firms has now substantially receded.
The disappearance of former suitor and largest shareholder ASX-listed rural services company Ruralco from the share register was another sign that Elders was returning to a more normal state, he said.
Mr Allison said on Tuesday the chances of an opportunistic takeover had receded sharply.
Elders was rebuilding its balance sheet and making operational improvements to put it back on a surer footing after some difficult times in mid-2014, when several outside parties had looked closely at the company.
"When we were attracting the attention it was largely opportunistic," Mr Allison said.
"We were at our weakest then." But that time had now passed.
"Opportunistically, that period's gone," he said.
Ruralco sold its 12 per cent stake in Elders last week for $12.7 million as Elders reinvigorated its balance sheet through a capital raising totalling $57 million, which includes a three-for-five entitlement issue for existing shareholders at 15¢ a share.
Ruralco in 2013 made a bid for Elders' rural services arm valued at about $250 million but was unsuccessful. It retained the 12 per cent stake until last week when it opted to sell out at 23¢ a share, signalling an end to any takeover aspirations in the short term.
But Ruralco hasn't been the only potential suitor. In July this year, Elders confirmed several parties had been looking closely at the company but that no formal offer had been put to the board. Elders didn't name the parties at the time.
But there was strong speculation that one of them was private equity firm Pacific Equity Partners, which has been active in the Australian market, including an indicative $1.1 billion buyout proposal for quality assurance and compliance company SAI Global. But despite a protracted sale process and awkward due diligence period, PEP and fellow private equity firm Kohlberg Kravis Roberts in the end didn't submit a bid last week for SAI when the sale process ended.
Other potential suitors for Elders earlier this year were rumoured to be live-cattle trading firm Wellard, and a group of Asian investors.
Mr Allison said the Elders board was working for all shareholders to create more value.
The exit of Ruralco meant the Elders share register would have more of the characteristics of a normal company.
"It's almost a return to a normal institutional register," he said.
While Ruralco has completely exited the register, QBE Insurance, which had previously held 5.1 per cent, has dropped below the 5 per cent substantial shareholder level because of dilution in the rights issue.
Documentation for the rights issue also reveals the three banks which are staying put in a banking syndicate and backing new working capital and financing arrangements. They are ANZ, Rabobank and NAB.
Commonwealth Bank and Rural Bank had previously been part of a broader banking syndicate along with ANZ, Rabobank and NAB.
Elders also has $145.2 million of hybrid securities listed on the ASX, which in practical terms have the characteristics of debt. The hybrids have a face value of $100 each, and are currently trading on the ASX at about $57.
