"The raising is designed to ensure that Excel maintains the balance sheet flexibility to enable it to take on new opportunities, should they arise,” Excel managing director Tony Haggarty said.

Excel placed 14.6 million new ordinary shares with institutional and sophisticated investors at an issue price of $6.85 per share.

The issue price represents an approximate 8.1% discount to the closing price of Excel shares on Thursday, February 23, 2006. The new shares will be entitled to receive the recently announced half-year dividend of 13c per share.

Simultaneously with the placement at the same price, six Excel directors also sold a total of 8 million shares, representing 7.4% of their collective holding.

Excel’s free float now stands at about 53%.

Excel said the bookbuild, conducted by Merrill Lynch, was well supported with more than 30 institutional investors participating, including a range of new Australian and international investors.

The placement shares are expected to settle and list on the ASX on Wednesday, March 1, 2006.

Excel will also provide its retail shareholders with an opportunity to participate in the capital raising through a share purchase plan. The plan will enable retail shareholders to acquire new shares at the placement price, adjusted for the interim dividend.

Excel shareholders with a registered address in Australia and New Zealand can apply for up to $5000 worth of ordinary shares in Excel at $6.72 per share, incurring no brokerage or other transaction costs. The SPP is non-renounceable and is not underwritten.

It is expected that the offer period for the SPP will commence on February 28 and close on March 17. The record date for determining entitlements to the SPP is Friday, February 24. Excel said full SPP details would be sent to eligible shareholders shortly.