Key Takeaways
- Significant Capital Injection by Heartland Group: Heartland Group invests 186 million DKK in FirstFarms through a directed share issue and issuance of convertible bonds, positioning FirstFarms to pursue its “Strategy 2028 aggressively”.
- Ambitious Growth Targets: FirstFarms aims to double its turnover and earnings by 2028, leveraging organic growth and strategic acquisitions.
- Commitment to Sustainability: The investment will further FirstFarms’ transition towards more sustainable agricultural operations.
- Enhanced Market Positioning: With Heartland Group’s investment, FirstFarms aims to become one of Europe’s leading agriculture and food companies.
- Strategic Financial Moves: The capital increase includes issuing new shares and convertible bonds, enhancing FirstFarms’ financial foundation for growth.
Heartland Group Fuels FirstFarms’ Expansion and Sustainability Goals
Strategic Investment for Ambitious Growth
Heartland Group’s investment of 186 million DKK in FirstFarms provides FirstFarms with a strong foundation to implement its “Strategy 2028” which aims to increase the company’s turnover and earnings through organic growth and strategic acquisitions. The investment includes a directed share issue and the issuance of convertible bonds, which will support FirstFarms’ ongoing development and enable it to achieve its strategic objectives.
A Partnership Rooted in Shared Values
Anders H. Nørgaard, CEO of FirstFarms A/S, expressed enthusiasm over attracting a significant investor like the Heartland Group, highlighting shared values around agriculture, nature, and environmental stewardship. This partnership strengthens FirstFarms’ capacity to achieve its strategic goals. It aligns with its vision of becoming one of Europe’s most profitable and efficiently operated agriculture and food sector companies.
Financial Details of the Investment
The capital injection will see Constantinsborg A/S, a member of the Heartland Group, acquiring a 10.77 percent ownership stake in FirstFarms. This stake could increase to 18.78 percent if Constantinsborg exercises its right to convert the bonds into shares. The investment process involves issuing 12,000,000 new shares at 81 DKK per share and taking out a loan of 89,100,000 DKK through convertible bonds, both aimed at supporting FirstFarms’ strategic and sustainable growth initiatives.
Enhancing Sustainability and Market Leadership
Lise Kaae, CEO of Heartland A/S, echoed the enthusiasm for the investment, emphasizing FirstFarms’ commitment to addressing the climate transition challenges facing agriculture. This investment is seen as a strategic move to establish FirstFarms as a leader within Europe’s agricultural and food sectors, particularly in sustainable practices.
Empowering Future Growth
The strategic financial maneuvers, including the directed share issue and convertible bond issuance, are meticulously planned to bolster FirstFarms’ share capital and provide the financial leverage needed to pursue its growth strategy. The registration of new shares and the eventual conversion of bonds to shares are structured to facilitate FirstFarms’ journey towards doubling its financial performance by 2028, with sustainability at the core of its operations.
Image courtesy of FirstFarms A/S
