Shares in Tasmanian timber group, Gunns yesterday finished above the issue price after it completed the institutional component of a $145 million equity raising to finance the purchase of the timber processing division of Elders subsidiary ITC.
The institutional offer raised $115 million from the issue of about 128 million shares at 90 cents per share.
The shares were relisted after the trading halt and closed at $1, up 11% from the issue price, but down 12.6% from the previous close of $1.145
Gunns said in its statement that the institutional entitlement offer was well supported.
Gunns said the retail component of the offer would raise about $30 million through the issue of about 33 million new shares to retail holders.
"The Institutional Entitlement Offer raised approximately $115 million from the issue of approximately 128 million shares at an issue price of $0.90 per ordinary share.
"The Institutional Entitlement Offer was extremely well supported with strong demand from both existing and new institutional investors. Participation by existing shareholders was very strong, with over 97% of shares taken up by these investors.
"As announced on 31 August 2009, Gunns declared a final dividend for FY2009 of 2 cents per share. Gunns shares will trade ex-dividend on Monday 7 September 2009.
"The New Shares issued under the Institutional entitlement offer will not be entitled to the FY2009 final dividend," Gunn said.
Elders said yesterday that its shares were suspended "this morning pending the lodgement of results report for the year to 30 June 2009."
"Yesterday the Company requested a trading halt to enable finalisation of the terms of a recapitalisation and refinancing of the Company which will be reported in the Appendix 4F.
"The Company expects to release its Appendix 4F together with an announcement relating to the recapitalisation and refinancing later this week.
And securities in Babcock & Brown Infrastructure Limited were suspended yesterday pending an announcement about a possible recapitalisation scheme involving a big ‘new friend’ with deep pockets and lot’s of cash.
BBI’s securities were suspended at 7.8 cents pending the announcement of a possible equity injection, which is likely to come tomorrow (like Elders).
The group – which owns the world’s largest coal exporting terminal at Dalrymple Bay in Queensland – has been looking for a big new friend with lots of money to help it reduce the near $10 billion in debt.
It recorded a full-year loss of almost $1 billion after taking a write-down of $895 million against its assets in its 2009 accounts.
These include ports in the UK and Europe and the energy assets it acquired from West Australian company Alinta two years through a takeover orchestrated by its one time parent, Babcock & Brown.
BBI has since been selling assets to reduce its debt and currently has both Dalrymple Bay and its PD Ports operation in Britain on the market, but buyers have been few and far between at the prices BBI wants.
BBI hinted that it was talking to a group who may be a "cornerstone investor" in that they might take a large stake in the group.
"Babcock & Brown Investor Services Limited as responsible entity of the Babcock & Brown Infrastructure Trust request an immediate trading halt in respect of Babcock & Brown Infrastructure stapled securities (ASX: BBI) pending an announcement regarding a possible arrangement with a potential cornerstone investor to work towards a recapitalisation transaction.
"It is expected that the trading halt will end upon an announcement regarding the possible arrangement being made by BBI. BBI currently expects this to occur by 10 a.m. on Friday 4 September 2009."
