18/05/2009 - 18:10

AHG completes $34m institutional raising

18/05/2009 - 18:10

Bookmark

Save articles for future reference.

Automotive Holdings Group has raised more than $34 million from an institutional placement, and plans to launch a share purchase plan shortly.

AHG completes $34m institutional raising

Automotive Holdings Group has raised more than $34 million from an institutional placement, and plans to launch a share purchase plan shortly.

The Perth-based car dealer and transport logistics company flagged earlier today it had launched an institutional placement, however did not release details of the placement.

In a statement released after market close, AHG said the oversubscribed placement raised $34.4 million through the issue of 28.7 million shares at $1.20.

Shares in AHG last traded at $1.30. The placement was managed by Euroz Securities and Merrill Lynch.

AHG managing director Bronte Howson said proceeds from the placement will provide the company the flexibility to pursue future growth opportunities.

The company also plans to use the funds to reduce its $353 million debt.

Details of a share purchase plan will be announced shortly, AHG said.

 

 

The announcement is below:

 


Automotive Holdings Group Limited (ASX: AHE) ("AHG") is pleased to announce that it has successfully completed an Institutional Placement of 28,702,667 shares at $1.20 per share to raise gross proceeds of $34.4 million.

The placement was oversubscribed with strong demand from new and existing institutional investors.

AHG Managing Director, Bronte Howson said the placement meant AHG was in a stronger position for future growth.

We are delighted with the high level of support we've received from institutional shareholders, said Mr Howson.

'We see strong demand as an endorsement of our diversified business model and management strategy.

'Proceeds from the placement will provide us with greater flexibility to pursue future growth opportunities.

'We remain committed to the continued growth of AHG and creating value for all our shareholders.'

Merrill Lynch and Euroz Securities acted as joint lead managers to the offer.

Trading in AHG shares is expected to resume on the Australian Securities Exchange on 19 May, 2009. Settlement of the new shares issued under the placement is expected to take place on 21 May with quotation expected on 22 May.

AHG plans to offer existing shareholders the opportunity to participate in a Share Purchase Plan, details of which will be announced shortly.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options