Quickstep Holdings has today revealed plans to raise close to $18 million as it gears up to secure the $700 million Joint Strike Fighter program.
Quickstep Holdings has today revealed plans to raise close to $18 million as it gears up to secure the $700 million Joint Strike Fighter program.
The capital raising plan comes as the federal government today approved the acquisition of the first 14 Joint Strike Fighters as well as infrastructure and support required for initial training and testing at an estimated cost of $3.2 billion.
Quickstep managing director Philippe Odouard said the government's announcement provided more evidence of the government's commitment to the JSF program and confirmed that Australia was on track to be a key customer of the aircraft and play a vital role in its construction.
Quickstep earlier this month signed a memorandum of understanding with global aerospace corporations Lockheed Martin Corporation and Northrop Grumman Systems Corporation over a potential $700 million contract to manufacture components for the new Joint Strike Fighter.
The MoU paves the way for the parties to finalise a formal agreement for Quickstep to supply 19,325 composite
doors and access panels. Quickstep anticipates the final agreement to be completed by the end of March next year.
The potential manufacturing contract is planned to last between 20 and 30 years and could generate annual turnover of $50 million for Quickstep by 2015.
Shares in Quickstep, which had previously been in a trading halt, were down two cents to 54.5c at 14:46 AEDT.
Part of the capital raising announcement is below:
The Directors of Quickstep Holdings Ltd ("Quickstep" or "the Company") are pleased to announce a share placement to institutional and sophisticated investors and a share purchase plan ("SPP") which together are targeted to raise up to $17.732 million (before transaction costs). The issue price under the placement and SPP is
52 cents per share.
The funds will largely be used for
- the purchase of capital equipment and non recurring costs for the +$700 million MoUs relating to the Joint Strike Fighter program, which were signed in November 2009; and
- general working capital requirements.
Placement
State One Stockbroking Ltd ("State One") is the Lead Manager to the placement of up to 22.1 million fully paid ordinary shares in the Company at 52 cents per share, to raise an amount of up to $11.492 million (before transaction costs).
The placement will be made to Australian institutional, high net worth and private investors, as well as to certain overseas investors. Shares issued pursuant to the placement will rank equally with Quickstep's existing ordinary shares.
Shareholder approval of the placement is not required under the ASX Listing Rules; however Quickstep may seek shareholder approval in the future to ratify the issue of shares under the placement.
Share Purchase Plan
Quickstep will also be offering existing shareholders the opportunity to invest in the Company at a price of 52 cents per share through a Share Purchase Plan ("SPP") targeted to raise a further $6.24 million. This is the same price as under the Placement and represents a discount of approximately 15% to the Company's average closing price of 61.3 cents over the 5 trading days up to and including 20 November 2009 (the last trading date before the Company went into trading halt to conduct the share placement).
Offers under the SPP will be made shortly and will enable eligible Australian and New Zealand shareholders in the Company, irrespective of the size of their shareholding, to purchase up to $15,000 worth of fully paid ordinary shares in Quickstep, at an attractive price, free of all brokerage and commission.
The SPP will be open to all eligible shareholders who are registered holders as at 4.00pm Perth time on 14 December 2009. The Company expects that the SPP will close on 6 January 2010, and that SPP shares will be issued by 15 January 2010. The SPP offer is non-renounceable, and no prospectus will be issued in respect of the SPP offer. Documents relating to the SPP will be sent to shareholders shortly after the record date.
