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Chandler Macleod Group raises $24.7m in shares

The Placement was completed at an issue price of $0.45 per share, representing a 5.3% discount to the closing price of Chandler Macleod’s shares on 13 December 2013 and a 3.6% discount to the volume weighted average price for the five trading days prior to the announcement of the Placement.

New shares issued under the Placement will rank equally with existing Chandler Macleod shares.

Funds received from the Placement will be used to pay down existing debt facilities and further strengthen Chandler Macleod’s balance sheet.  The Placement also enables Chandler Macleod to consider additional acquisitions aimed at further diversifying the business mix.

Managing director, Cameron Judson, commented, “Over the last 12 months we have undertaken a number of strategic initiatives and positioned the company well to capitalise on any improvement in market conditions.

“The institutional placement will provide us with increased financial flexibility to continue to pursue our growth strategy (as outlined in the Chairman’s AGM address on 7 November 2013).  We are very pleased with the strong demand for the Placement from a broad range of existing and new institutional investors,” said Mr Judson

Trading conditions since the AGM have been largely unchanged.  The Board is pleased to reconfirm the earnings guidance provided on 7 November 2013 that the full year 2014 EBITDA result is expected to be in line with the result achieved in 2013 despite a much lower first half result than the same period last year.

Chandler Macleod shares are expected to resume trading on ASX today.

Moelis Australia Advisory Pty Limited acted as sole lead manager and underwriter for the Placement.




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