Rural Funds Group shares jump after earlier attack from Bonitas Research

Rural Funds Group shares jump after earlier attack from Bonitas Research
Rural Funds Group shares jump after earlier attack from Bonitas Research

The PwC-audited listed rural property trust, Rural Funds Group saw its share price jump by 50 cents on resumption to ASX trading having slumped earlier this week by 50 percent.

The stock had dropped 99c to $1.36 in its early trade, with its Thursday resumption seeing trading at $1.86 in Thursday trading.

It was a 36 percent gain.

It is still trading below the price before the rural property trust was the subject of an adverse report by a short selling research group.

The earlier $335 million wipeout in just under the first 30 minutes of trade on Tuesday came after it was targeted in a report by the US-based short-seller Bonitas Research.

Bonitas's previous damaging report was on Blue Sky Alternative Investments last year. 

Rural Funds Management managing director David Bryant had quickly hit back at the negative report, and presented shareholders with an update today.

Byrant has engaged EY to undertake a review within the next three week of the audited accounts which he said were accurate, barring one small item.

RFG owns more than $900 million worth of agricultural assets including almond and macadamia orchards, vineyards, water rights and cattle farms.

It was last in the headlines when the rural property trust bought Cobungra Station (pictured) for $35 million earlier this year.

Cobungra Station – one of Victoria's largest and most prestigious high-country beef breeding enterprises – was sold for only the third time in 100 years.

The $35 million deal secured the 6486-hectare alpine beef property at the foot of Mount Hotham, plus more than 24,000 hectares of adjacent grazing licences.

 

Tags: 
Rural Funds Group Blue Sky Alternative Investments

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?