Why the Vitalharvest (ASX:VTH) share price is on watch next week

The Vitalharvest Freehold Trust (ASX: VTH) share price is on watch after Roc Partners’ edged ahead in the takeover tug of war.

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The Vitalharvest Freehold Trust (ASX: VTH) share price has been on fire in 2021. Shares in the Aussie agricultural real estate investment trust (REIT) have surged 23% higher so far this year amid a takeover tug of war.

Investors will be keeping an eye on the REIT early next week. The Vitalharvest share price could be one to watch after the company shared news of an update on the takeover offer received from private equity group Roc Partners on 15 April 2021.

Why is the Vitalharvest share price worth watching?

Vitalharvest this morning provided an offer on the binding Roc proposal to acquire all units for $1.18 per share or $333.3 million. This is the fourth Roc proposal received and represents a superior offer to the fourth Macquarie Agricultural Funds Management Limited (MAFM) proposal received on 14 April 2021, according to the Vitalharvest Board.

Both the fourth Roc proposal and fourth MAFM proposal will permit the payment of 2.5 cents per unit interim distributed from rent received to 31 December 2020.

The Vitalharvest share price is worth watching as the takeover bid continues. Vitalharvest’s Board has notified MAFM that it has 5 business days to match. That means MAFM has until 22 April 2021 to provide a matching or superior proposal to the Fourth Roc Proposal.

The Vitalharvest share price is currently trading at $1.21 per share. That’s above the $1.18 per share fourth Roc proposal price but also reflects the 2.5 cents permitted distribution.

There may not be much movement in the agricultural REIT’s valuation until a response from MAFM is received. That could be either an update offer or withdrawal of interest.

If MAFM decides not to exercise its matching right, Vitalharvest intends to enter into the Roc Scheme of Implementation Deed.

Foolish takeaway

The Vitalharvest share price has been surging higher in 2021 as investors scramble to acquire the agricultural REIT. 

While the REIT’s unit price remained unchanged today, investors will be waiting for a response from MAFM ahead of the April 22 deadline.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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