LOCAL IT services player Alphawest is preparing to lodge a prospectus outlining the terms of an $8 million capital raising as part of its backdoor listing through Perth property investment company AIS Corporation Ltd.
It is understood that AIS, which will take the name Alphawest at the completion of the process, will raise $8.4 million with an offer of 16.8 million shares at 50 cents each. The re-listing of the merged entity’s securities on the Australian Stock Exchange is expected in late March.
AIS announced the purchase of 18-year-old Alphawest for $8.9 million in scrip in October last year, along with plans to raise equity and debt to finance the arrangement.
The fund raising associated with the listing will assist in the repayment $15.5 million in vendor finance provided by Solution 6 Holdings to Alphawest during a management buy out in 2002.
At Solution 6’s AGM held on October 31 2003, the company said the announcement by AIS supported the Solution 6 board’s confidence that the $15.5 million receivable would be repaid in full.
Subject to shareholder approval, AIS will change its name to Alphawest Limited. A new board will include Alphawest’s existing chairman Hugh Beggs, its current CEO Garry Henley and its chief operating officer Joe Browne.
Poynton and Partners will act as corporate advisers on the deal, while Paterson Ord Minnett has been appointed underwriters.
Clayton Utz and Ernst and Young are also working on the deal.
According to documents lodged by AIS with the ASX, during 2001 Alphawest grew its turnover from approximately $60 million to $125 million due to business acquisitions.
