10/10/2011 - 11:22

VDM mulls Cape Crushing offer

10/10/2011 - 11:22

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VDM mulls Cape Crushing offer

VDM Group says it is considering an offer to sell its subsidiary, Cape Crushing and Earthmoving Contractors.

VDM announced today it had received a non-binding proposal for the sale of Cape, and has granted the undisclosed bidder a four-week period of exclusivity to conduct due diligence.

The terms of the proposal remain confidential.

“Despite discussions being in preliminary stages, VDM Group believes it is important to ensure its shareholders are informed that an indicative proposal has been received, particularly in light of the restructuring initiatives that are currently being progressed,” the company said in a statement to the ASX today.

VDM’s stock remains in a trading halt.

The company confirmed a full-year net loss of $35.5 million last month, as it continues with its restructuring and cost-saving initiatives.

VDM said it was also continuing to pursue its capital raising initiatives with the assistance of lead manager Patersons Securities.

The company is seeking to raise a minimum of $28 million, and up to $52 million through an entitlements offer to existing shareholders.

Any implications of the sale of Cape for the entitlements offer would be disclosed in a supplementary prospectus, VDM said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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