JV buyout completed

The irrigator shareholders of BCI Limited have taken 100% control of the BCI irrigation scheme following settlement of the JV buyout at the end of September.  This follows a successful capital raise to fund the purchase of the share of the business previously held by local lines company EA Networks.

The Board of BCI have acknowledged the support of EA Networks over the last eight years, and look forward to continuing to provide sound strategic direction to the company under full irrigator ownership.

Capital raise highly successful

Existing shareholders of Barrhill Chertsey Irrigation Limited (BCIL) have committed over $25 million dollars to enable the irrigator co-operative to take 100% control of the BCI Scheme.  Subject to meeting a number of other conditions, the company will purchase the 50% share of the joint venture, currently held by EA Networks, on 29 September 2017.

In July BCIL lodged a Product Disclosure Statement with the Companies Office which had a minimum capital raise of $17,692,500 to enable the joint venture buyout to proceed.  The commitment from shareholders exceeded that minimum and represents support from 80% of the irrigating shareholding.

Annual Meeting Notified

The Annual Meeting of Barrhill Chertsey Irrigation Limited will be held 7.30pm on Tuesday 22nd August, Methven Heritage Centre, Main Road, Methven.

Shareholders have had preliminary notification of the meeting and nominations for Directors have been called for.

The results of the joint venture buyout capital raise process, which closes the day prior, will be announced at the annual meeting.

Capital raise under way

Today Barrhill Chertsey Irrigation Limited lodged a Product Disclosure Statement (PDS) with the Companies Office to enable the company to raise capital from existing irrigator shareholders to take 100% control of the Barrhill Chertsey Irrigation Scheme.

The capital raise has a closing date of Monday 21 August 2017, and the Company must receive minimum subscriptions totalling $17,692,500 by that date.  If all existing shareholders contribute at the share standard a total of $33,761,000 will be raised.

The funds will be used to purchase the share of the joint venture irrigation infrastructure business which is currently held by local electricity lines cooperative EA Networks.  EA Networks were instrumental in the establishment of the scheme in 2010 and have supported its significant subsequent growth.

Those irrigator shareholders who invest under this offer will receive a return in the form of reduced annual water charges.  You can read the PDS through the link below.

Product Disclosure Statement

 

 

Shareholders approve JV buyout

A Special Meeting of BCIL shareholders was held 16 May 2017 to consider resolutions in relation to a proposal to take 100% control of the BCI Scheme.  The meeting was well attended and overwhelmingly supported the Board progressing the proposal to buy out the Electricity Ashburton Limited 50% share of the irrigation scheme.

Electricity Ashburton Limited was instrumental in the establishment and subsequent expansion of the scheme providing equity, governance expertise, and commercial discipline.  A recent review of the joint venture arrangements provided an opportunity for irrigators to consider if they would support the buyout.

BCIL will now prepare a Product Disclosure Statement to present to shareholders inviting investment of new capital to enable the buyout to transact.

Stage Two Progressing

Following a successful capital raising in late 2014 the stage two expansion project is under way.  The project will deliver around 1.2 cumecs to properties in the area between Barrhill and Dromore.

Infrastructure includes a new intake from the Rakaia River near Barrhill, a pumped line to the Barrhill area, and a gravity delivery line to the Chertsey and Dromore areas.  A hydro generator will also be installed in the river infrastructure.  Around 64km of pipe will be installed with a target completion date in September 2015.

Work has commenced in the Rakaia riverbed and April will see the first pipes installed in the project.

Prospectus Registered

Today BCI Limited registered a prospectus to allow applications for shares and new water connections over the entire BCI network.  The capital raised will be invested in the joint venture with EA Networks which will install infrastructure to accommodate the new connections.

The prospectus closes on 30 June 2015 but it should be noted that timing of installation of new connections will be prioritised based on timing of applications under the prospectus.  The joint venture has a large number of new connections to make including the stage two expansion project which is under way, and only 2 cumecs of water is available under the prospectus.

Prospectus documentation is attached to the BCI Limited page.

Water Agreement Updated

A new version of the BCI water agreement has been published today.  The changes to the agreement are set out below;

  • Modified clause 2.1 and removed 2.2 to reflect that the scheme is operating and no longer requires preconditions around meeting minimum uptake and forming a joint venture.
  • Added clause 3.5 to provide that the BCI Board may surrender surplus shares from transacting members.  Designed to ensure Ordinary shares are available for further scheme expansion.
  • Added clause 8.3 to reinforce requirement for irrigators to provide Overseer simulations for monitoring nutrient loss from their properties.
  • Added new distribution lines to schedule one.
  • New version below.

Water Agreement (16 Sept 2014)

 

Stage Two Prospectus

Today Barrhill Chertsey Irrigation Limited registered a capital raising prospectus to seek support for the stage two development.  The prospectus will close on 7 November 2014.

Subject to gaining sufficient support from the capital raising the BCI scheme intends to build a new river intake at Barrhill, a pumped delivery line at Barrhill, and a gravity delivery line to Chertsey.  The design of the gravity line incorporates a hydro generation component which will support significant overcapacity and also hedge against increasing energy prices for the scheme.

Farmers in the area are being encouraged to carefully consider if this proposal could add value to their businesses, providing pressurised water to the farm boundary, backed up by comprehensive asset management and environmental management systems.

Prospectus documentation is available on the BCI Ltd page.