Stevedoring group Lang
Corporation Limited (LAC) revealed plans today to raise a hefty $400
million through a private placement and a renounceable rights issue. However,
the group remained coy over where the money would be spent.
A placement of 16 million shares aims to raise
$188.8 million, while a one for eight renounceable rights issue will raise
about $209 million.
LAC said proceeds of the placement and rights issue
would be used to fund a number of "expansion opportunities" which the company
is "presently considering in stevedoring and land based logistics
businesses".
The placement will be underwritten by JB Were and
will be undertaken by way of a book build at minimum price of $11.80
share.
The rights issue will not underwritten and will be
made pursuant to a prospectus to be sent to all Australian and New Zealand
shareholders of the company. Each shareholder will be entitled to subscribe
for one new
ordinary share for every eight they hold on the record date at
a price of $10.00 per share.
Lang Corp shares closed three cents weaker at
$12.66 today. The record date for entitlements in the rights issue is likely
to be in early March 2001 with the prospectus being despatched to shareholders
by the end of February. Holders of the company's converting preference shares
will also be entitled to participate in the rights issue in accordance
with the terms of those shares.
Today's capital raising is the largest in the
company's recent history and comes 18 months after the company raised
$204 million through the issue of converting preference shares and a
non-renounceable rights issue.
LAC, headed by Mr Chris Corrigan, hit a
record $13 last month after its Patricks Stevedores terminal in Fremantle set
a new productivity benchmark. LAC shares weakened three cents today to
$12.66
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