Kathmandu clothing founder Jan Cameron has emerged as a major backer of OnCard’s equity raising to buy The Van Diemen’s Land Company, securing $40 million of the $250m on offer in the business.
OnCard recently purchased Tasmania’s Meander Valley Dairy and has the Tasmania-based Bellamy’s Organic Investors chairman Rob Woolley on its board.
Cameron already has a cornerstone stake in Bellamy’s, which is held through a Singaporean entity, and the success of that company may have whetted her appetite for the OnCard raising.
Cameron was previously Australia’s fourth-richest woman after securing her fortune through her Kathmandu clothing company. She currently lives in Tasmania, where Van Diemen’s Land Company is based.
OnCard’s move to buy Van Diemen’s through Wilson HTM was first flagged by DataRoom on October 2.
The company’s raise this week was launched by Wilson HTM and Pac Partners and priced at 25c per share, as revealed online by The Australian’s BusinessNow blog yesterday.
According to a term sheet sent to investors, OnCard, to be renamed Tas Foods, will pay $190m for VDL, Australia’s single largest milk producer, with the remaining $60m raised earmarked as working capital.
All sounds like the two business will be one before too long.
TFL Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
