Centennial institutional offer oversubscribed

CENTENNIAL Coal has sold $47 million of new shares to institutions and is in the process of offering another $53 million to retail investors to partly fund its purchase of New South Wales state-owned coal producer, Powercoal. Published on MiningNews.net, August 1.

Staff Reporter

The institutional component of the priority entitlement offer raised about $26 million through the issue of one new share for every 1.8 held at $1.55 per new share, and an institutional placement also raised about $21 million at $1.55 a share. Both closed oversubscribed.

The retail placement is being offered on the same basis as the priority entitlement to institutions.

Centennial, which will become the biggest independent supplier of coal to NSW power plants once the acquisition goes through, plans to debt finance the balance of the $306 million purchase.

The debt facility is being arranged by a group of unnamed banks.

Centennial shares rose 5c to $1.80, ex-dividend, when they resumed trading today for the first time since Monday's Powercoal announcement. However, by mid-afternoon they were 7c, or 4%, lower at $1.68 off an intra-day low of $1.67.

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