Aristocrat Leisure shares took the predictable pounding yesterday after relisting in the wake of the successful institutional share raising.
The company said it had placed 61.5 million ordinary shares at $3.25 per share to raise $200 million.
The shares then fell by more than 14% to a low of $3.38, before recovering a touch to $3.47.
Executive Chairman David Simpson said, "We are delighted with the response we have received from our existing shareholders and also from new investors. The proceeds of this placement will position us strongly to deal with the current operating environment and further strengthen our position for future growth."
Now Aristocrat will seek to raise up to a further $75 million from ordinary shareholders. Good luck.
Meanwhile, fertiliser and explosives group, Incitec Pivot has lost chief executive Julian Segal who has been named to succeed Caltex Australia Ltd’s outgoing chief executive Des King.
Incitec said Mr Segal was leaving the Melbourne-based company for family reasons, to return to his home city of Sydney.
He had been CEO since June 2005.
Mr King is currently seconded from Caltex’s major shareholder Chevron, and will return to the US at the end of his secondment agreement on June 30.
He will assume responsibilities as Caltex chief executive on July 1 after working with Mr King in a transition period, Caltex said yesterday in a statement to the ASX.
Mr Segal will be paid a base salary of $1.7 million in his new role, with $100,000 annually in superannuation.
Short term incentives will range from 50% to 100% of base salary in the first year of his contract, half of which would be paid in cash and the remainder in equity, Caltex said.
Incitec Pivot said chief financial officer James Fazzino would be acting chief executive while a replacement was sought for Mr Segal.
Mr Segal will leave Incitec Pivot on May 8, 2009.
Incitec Pivot shares fell 7.5% or 17c to $2.09, while Caltex shares rose 23c to $9.39.
So the market has judged which company is a winner and which is the loser.
And oil and gas producer Origin has signed a $660 million conditional deal to buy more coal seam gas exploration rights in Queensland.
A company statement said the exploration permit in the Undulla Nose coal seam gas (CSG) province would be purchased from the Pangaea group of companies and be funded from existing cash reserves.
Origin expects to book proved, probable and possible reserves of CSG of around 1,150 petajoules (PJ) in respect of the area at June 30, 2009, with further contingent resources of about 500 PJ.
"The transaction is evidence of the continuing consolidation of the CSG industry, principally in Queensland," Origin managing director Grant King said.
"The acquisition of this permit is particularly attractive.
"We have a solid understanding of the exploration and productive potential of this area.
"It is near gas transmission infrastructure that services existing gas markets and is close to Origin’s Darling Downs Power Station development and the Braemar 1 and 2 peaking power stations," Mr King said.
The area, ATP 788P, contains the southerly extension of the highly prospective Undulla Nose coal seam gas (CSG) province in Queensland. ATP 788P lies immediately to the south of the Kenya CSG field, and approximately 20 kilometres from the Talinga, Argyle and Berwyndale South fields, Origin said in the statement.
"Under Origin’s joint venture arrangement with ConocoPhillips, Australia Pacific LNG (APLNG) has the right to acquire the interest in ATP 788P prior to completion. APLNG is developing Australia’s largest proposed CSG to LNG project, which has recently been declared significant by the Queensland Government’s Coordinator General," the company said.
Origin said the acquisition of interests in the permit would be completed after certain conditions were satisfied, including government approvals.
Origin shares rose 21c to $15.60.
