NAMA Shortcuts
Member Directory
Best of NAMA 2015
Upcoming Events
Chapters
Agri-Marketing Conf
More NAMA












FARMLAND PARTNERS, AMERICAN FARMLAND COMPANY STOCKHOLDERS APPROVE MERGER
Source: Farmland Partners news release

Farmland Partners Inc. ("FPI") (NYSE: FPI) and American Farmland Company ("AFCO") (NYSE MKT: AFCO) announced that the stockholders of both companies have approved the proposed merger between FPI and AFCO. The merger is expected to close on February 2, 2017 at which time FPI will acquire all of the outstanding common stock of AFCO in a stock-for-stock transaction.

Shares of the combined company's common stock will continue to trade under FPI's existing ticker symbol "FPI" on the New York Stock Exchange.

The combined company will be the largest public farmland real estate investment trust in the nation, spanning more than 144,000 acres across 16 states. On a consolidated basis, the combined portfolio is expected to consist of approximately 75% primary row crop farmland and 25% specialty crops (fresh fruits and vegetables and permanent crops) by value.

This composition of farmland closely tracks the aggregate value of all U.S. agricultural production, which FPI believes offers stockholders well diversified exposure to high-quality U.S. farmland. FPI generally does not operate properties; it leases its farmland to some of the leading producers in the nation.

Following the completion of the merger, FPI will have more than 100 tenant farmers who grow more than 26 major commercial crops, resulting in broad diversification across the company's portfolio. FPI expects to consolidate AFCO's operations into FPI's existing Denver-based headquarters and to realize significant cost synergies through eliminating duplicate administrative and other public company costs.

As a result of cost savings and higher capitalization rates associated with specialty crops, FPI expects the transaction to be approximately 10% accretive to FPI's AFFO per share in 2017, growing to 20% accretive as synergies are fully realized.

Commenting on the merger, Paul Pittman, FPI Chairman and CEO, said, "The strong support of our and AFCO's stockholders underscores the value of this transaction. AFCO's high-quality assets will further increase FPI's diversification across crops and geographies.

As a result of increased scale, we expect to realize a reduction in overall costs as a percentage of portfolio value, creating superior value for our and AFCO's stockholders. We also look forward to working with the exceptional tenants who operate on AFCO's farms."

Vote Results and Closing

Approximately 54.65% of the outstanding shares of FPI common stock voted at the FPI special meeting, with approximately 96.22% of the votes cast in favor of the issuance of shares of FPI common stock in connection with the proposed merger.

Approximately 64.61% of the outstanding shares of AFCO common stock voted at the AFCO special meeting, with approximately 99.64% of the votes cast in favor of the proposed merger.

Subject to the satisfaction or waiver of the remaining conditions to the closing of the merger, the merger is expected to close on February 2, 2017. Upon the consummation of the merger, each former share of AFCO common stock will be automatically converted into the right to receive 0.7417 shares of FPI common stock, and each former AFCO operating partnership unit will be automatically converted into the right to receive 0.7417 FPI operating partnership units, with cash paid for any fractional shares or units that an AFCO stockholder or unitholder would otherwise be entitled to receive.

In addition, each former restricted stock unit of AFCO that has become fully earned and vested in accordance with its terms will be automatically converted into the right to receive 0.7417 shares of FPI common stock. Shares of AFCO common stock are expected to be delisted after the close of trading on February 2, 2017.


Search News & Articles























Proudly associated with:
American Business Media Canadian Agri-Marketing Association National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters American Agricultural Editors' Association Livestock Publications Council
All content © 2017, Henderson Communications LLC. | User Agreement