AACo considering capital raising

Group confirms reports it is considering raising, Wellington reduces stake.

Australian Agricultural Company Ltd (AAC) has confirmed speculation it is mulling a capital raising share issue to shore up the group's blance sheet.

In a statement to the Australian Securities Exchange, AACo said it has in the past, and was currently, considering options available to strengthen the balance sheet, including a capital raising.

"While the structure of any potential share offer (including the size and type of any raising) has not been finalised, the company is having discussions with potential underwriters and sub-underwriters," AACo said.

AACo said it would advise the market of any decisions in due course.

Separately, AACo revealed international investor Wellington Management had cut its stake in the group for the second time in as many weeks. 

Wellington reduced its share holding from 8.1% to 6.5%.