Asciano keeps issuing securities

TRANSPORT infrastructure group Asciano is continuing its equity raising efforts by launching a $A100 million security purchase plan.
Asciano keeps issuing securities Asciano keeps issuing securities Asciano keeps issuing securities Asciano keeps issuing securities Asciano keeps issuing securities

 

Blair Price

The company, which wholly owns the Pacific National coal business, has recently raised $604 million from a retail entitlement offer, exceeding expectations by $177 million.

This comes in addition to an equity raising of $1.92 billion that was underwritten by institutional investors.

Under the new security purchase plan, Asciano will issue stapled securities at $1.10 each without brokerage or other transaction costs.

The plan is capped at $100 million of total issues and applies to eligible security holders on the record as of July 21, with documentation to be mailed out by July 24.

The offer period opens July 23 and closes August 12.

Asciano managing director and chief executive Mark Rowsthorn has taken up the entitlement of 76.2 million stapled securities under the previous entitlement offer at the $1.10 price, costing $83 million.

To fund his purchase, he sold 40 million existing Asciano stapled securities at $1.25 each for $50 million and obtained a loan for the remaining amount.

Asciano said Rowsthorn could not increase his previous 10.92% holding in the company by fully participating in the offer. The Sydney Morning Herald newspaper has reported his stakeholding in Asciano will now fall to about 5%.

The company announced it had $4.74 billion net debt at the end of May and expected net proceeds from its equity raising spree would reduce this to $2.45 billion.

Earlier in the year, Asciano had flagged a potential takeover of the company and the sale of up to 100% of the Pacific National business.

Shares in Asciano closed down 5.5c to $1.36 on Friday.

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