19/12/2017 - 15:14

MMA defends capital raising

19/12/2017 - 15:14

Bookmark

Upgrade your subscription to use this feature.

MMA Offshore chairman Andrew Edwards has defended the timing of the company’s recent $97 million capital raising at its annual meeting today, saying the oil and gas firm needed a solution to its debt problems.

Halom had been seeking to dump Jeff Weber at today’s annual meeting.

MMA Offshore chairman Andrew Edwards has defended the timing of the company’s recent $97 million capital raising at its annual meeting today, saying the oil and gas firm needed a solution to its debt problems.

The company announced last month it would raise the funds to repay debts and repair its balance sheet, however major shareholder Halom Investments requested the Takeovers Panel revise the raising, claiming the deal was designed to entrench the incumbent board.

The panel accepted an undertaking from MMA to postpone its meeting allowing all new shareholders to be eligible to vote.

The panel did declare the circumstances of the raising unacceptable and said it would be concerned if the timetable initially adopted by MMA were to occur again.

Halom had been seeking to dump managing director Jeff Weber at today’s annual meeting but announced yesterday it had withdrawn its proposed resolutions.

Following the capital raising Halom’s stake in the company shrunk from 18 per cent to 7.8 per cent.

Mr Edwards said MMA had attempted to involve Halom in the raising but they had not taken up the offer.

“I can understand the perception that the timing of the equity raising was done simply to frustrate Halom,” he said

“That wasn’t the case- when the opportunity presents itself… you’ve got to take it.

“Can you imagine what the questions might have been like at this AGM if the board had said.. ‘let’s wait’ and then the market moved against us and we couldn’t do it?.

“The outcome of this (capital raising) is that everybody is better off, this company is much stronger financially than it was in consequence.”

All three resolutions at the meeting were passed with the remuneration report receiving 77 per cent support, while Eve Howell was re-elected and Peter Kennan was elected. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options