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Wednesday 26th October 2011 |
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Australian waste manager Transpacific Industries has gone into a trading halt on the ASX and NZX pending a partially underwritten share offer.
The Brisbane-based company, which wrote down the value of its New Zealand assets by A$181.5 million this year, has requested trading halts on the Australasian bourses to prepare a book-build for institutional investors.
The company will offer shares to retail and institutional shareholders through a pro-rata accelerated renounceable entitlement offer, it said in a statement to the ASX.
Transpacific expects to resume trading on Oct. 31.
The waste manager reported a net loss of A$296.5 million in the 12 months ended June 30, compared to a profit of A$59 million in 2010 after writing down the value of its assets.
In July it was forced to pull back its long-term growth forecasts, essentially admitting the NZ$870 million purchase of Waste Management New Zealand in 2006 was too high.
Debt has been an issue for Transpacific and it is focused on repaying lenders who helped finance its A$1.25 billion of Australian rival Cleanaway just before the global financial crisis in 2008.
The company has been confident of meeting looming maturities, having repaid A$240 million of net debt since tapping shareholders for A$801 million in the middle of 2009.
The shares are listed but do not trade on the NZX and last traded at 69 Australian cents on the ASX, having shed more than half their value this year.
BusinessDesk.co.nz
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