29/01/2009 - 10:49

Wesfarmers down on retail raising launch

29/01/2009 - 10:49

Bookmark

Save articles for future reference.

Shares in Wesfarmers have slipped today as the company launches the retail component of its capital raising efforts in a bid to reduce its debt position.

Wesfarmers down on retail raising launch

Shares in Wesfarmers have slipped today as the company launches the retail component of its capital raising efforts in a bid to reduce its debt position.

Wesfarmers is offering a three-for-seven accelerated pro-rata non-renounceable entitlement at $13.50 per share to help reduce its refinancing requirements from $6.4 billion to $1.6 billion over the next two years.

The company's share price dropped 64 cents to an intraday low of $15.38 before closing at $15.82, a fall of 20c.

Wesfarmers chairman Bob Every said in a mail-out letter to shareholders that new shares issued under the offer will not be entitled to the interim dividend for fiscal 2009, which is expected to fall from the previous year's 65c to 50c, fully franked.

Late last week, Wesfarmers announced it had successfully raised $2 billion from the institutional component of the offer, which was underwritten, and received $900 million from placement to mutual funds.

The retail component is not underwritten.

The mail-out of necessary forms to shareholders is expected to be wrapped up early next week and the offer is scheduled to close on February 23.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options