20/11/2014 - 15:20

GCS gets $14 million from Brookfield

20/11/2014 - 15:20

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Redcliffe-based labour and equipment hire business Global Construction Services has secured $14 million through a placement with a Brookfield Asset Management private equity fund, as part of a strategic partnership.

GCS gets $14 million from Brookfield

Redcliffe-based labour and equipment hire business Global Construction Services has secured $14 million through a placement with a Brookfield Asset Management private equity fund, as part of a strategic partnership.

Brookfield Capital Partners III has invested the capital in exchange for 29.8 million ordinary shares at 47 cents per share, giving the fund manager a 14.9 per cent stake in the company.

The placement pricing is at a 6.8 per cent premium to yesterday’s closing price and 10.4 per cent premium to one month volume weighted average price.

The placement will take place over two tranches, with $12 million worth of shares issued shortly and the remaining $2 million worth subject to shareholder approval at a general meeting scheduled for January.

GCS said in an announcement to the ASX that funds would be used to reduce debt and to provide additional working capital.

According to GCS, the strategic partnership was formed to “pursue industry consolidation and expand GCS’ products and skill set nationally” and would allow the company to drive its east coast expansion.

Business News reported late last month that GCS was subject to takeover speculation, with group managing director Enzo Gullotti disclosing that the company was assessing opportunities and that nothing had been put to it “in writing”.

GCS was advised by UBS in relation to the placement.

GSC shares were up almost 16 per cent to 51 cents at the close of trade today.

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