By Phil Boeyen, ShareChat Business News Editor
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Thursday 7th March 2002 |
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The Market Surveillance Panel had questioned the company after it noted its share price had fallen 29% between early February and early March, from $1.00 to 71 cents per share.
In a notice to the market Utilico notes that at the end of December it had a holding of $5.54 million in ERG convertible bonds.
"Since that date ERG Limited has announced that it will make substantial losses in the six months ended December 2001 as a result of writing down certain assets."
Utilico has now provided more detailed information on its exposure to ERG, which includes 2 million five-year 8% convertible notes of face value A$1.65 per note that mature on 16 October 2002.
"The notes will be repaid in cash or are convertible at the option of the holder at the rate of three ordinary shares for each note on issue at any time prior to the maturity date, equivalent to A55 cents per share. These convertible notes are unlisted," the company says.
The utilities investor also has 100,000 five-year-and-seven-month 7.5% convertible notes of face value A$13.50 with a maturity date of 1 October 2005.
"The notes are repayable in cash or are convertible at the option of the holders, at the rate of three ordinary shares for every note on issue at six-monthly intervals from 1 April 2001 to 1 October 2005, equivalent to A$4.50 per share.
In addition the company has just over 334,000 ordinary shares acquired through the recent rights issue, bringing the value of its ERG investments at close of business on March 6, 2002 to $4.82 million, adjusted for changes in the market value and accrued interest.
Utilico shares rebounded on Thursday after falling to 53 cents the previous day.
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