Kiland Ltd (ASX:KIL) has flung open the gates on an off-market buy-back that could see the company redeem as much as 22% of the KIL shares on issue.
Under the deal, the Kangaroo Island landowner is out to bring up to 11.296 million shares back into the fold at $1.34 apiece.
Kiland first flagged the buyback on November 8, signalling it was out to purchase roughly a fifth of the 60.83 million securities on issue.
There’s plenty of time for shareholders to get in on the action, with the buy-back scheduled to close on December 10.
Kiland, formerly known as Kangaroo Island Plantation Timbers, returned roughly $6.7 million to shareholders earlier this year through an on-market buy-back of 5.65 million shares.
If the maximum 11.296 million shares are bought back this time around, Kiland plans to return roughly $15.2 million to shareholders.
What’s to come?
Once the deal closes in mid-December, Kiland will announce exactly how many shares it will acquire.
If the number of shares exceeds the 11.296 million target, the agriculture stock will scale back applications on a pro-rata basis.
Any scale-back announcements will hit the market on December 13, which is also the buy-back date.
From December 16, shareholders should start to see the returns from the share sale hit their bank accounts.
A full breakdown of the buy-back timeline is detailed below:
Potential for future capital raising
When the buy-back was first announced on November 8, Kiland noted a capital raising was not on the cards if it bought back the maximum number of shares.
The company said: “The board believes excess capital should be returned to shareholders.
“If the maximum 11,296,071 shares are bought back, the board believes Kiland will be appropriately capitalised to fund the anticipated equity component of future reversion activities.
“However, if reversion costs or funding requirements differ from the board's current expectation, Kiland may raise equity capital in the future.
“Furthermore, Kiland may seek to raise equity capital in the future to fund other investment opportunities or other capital requirements.”
About Kiland
Kiland owns 18,600 hectares of prime agricultural land on Kangaroo Island in South Australia.
About 14,500 hectares of timber is planted to hardwood and softwood, which it is reverting from forestry to agriculture.
