Scrap metal group CMA Corporation Ltd has lodged its prospectus for a shareholder entitlement issue raising $37 million to fund the acquisition of Victoria-based Southern Rocycling.
Scrap metal group CMA Corporation Ltd has lodged its prospectus for a shareholder entitlement issue raising $37 million to fund the acquisition of Victoria-based Southern Rocycling.
Scrap metal group CMA Corporation Ltd has lodged its prospectus for a shareholder entitlement issue raising $37 million to fund the acquisition of Victoria-based Southern Rocycling.
The issue, allowing shareholders to subscribe for CMA shares on a three-for-four basis at a price of 32 cents per share, is fully underwritten by BBY Ltd and Pitt Capital Partners Ltd.
CMA shareholders will meet on June 1 to approve the $40 million acquisition, comprising a $25 million cash payment and share issue.
The record date for entitlement under the offer is June 13 and the closing date for acceptances is June 29.
The full text of a company announcement is pasted below
CMA Corporation Limited (ASX: CMV) has today lodged a Prospectus for its $37 million Entitlement Issue ("Issue") to fund the acquisition of Southern Rocycling and support the continued growth of the group across Australasia.
The non-renounceable Entitlement Offer gives eligible shareholders the opportunity to subscribe for new shares in CMA on a 3-for-4 basis at a price of $0.32 per share.
The Issue is fully underwritten by BBY Limited and Pitt Capital Partners Limited. The record date for entitlement is 13 June 2007 and the closing date for acceptances is scheduled for 29 June 2007.
Proceeds from the Issue will be used to settle the acquisition of Victoria-based Southern Rocycling, fund acquisition costs and to meet CMA's general working capital requirements.
The acquisition of Southern Rocycling is being funded through a cash payment of $25 million and the issue of 46.875 million CMA shares at an implied issue price of $0.32 - the same price at which shares will be issued under the Entitlement Offer.
Earlier this month, CMA announced it had settled on the acquisition of Brisbane-based Mann Metals, which trades as Bayside Metals.
CMA shareholders will be asked to approve the Southern Rocycling acquisition at a meeting to be held in Sydney on 1 June 2007.