AMP Capital becomes substantial holder of Freightways after sale

Thursday 9th April 2009

AMP Capital Investors has becomes substantial security holder of Freightways after participating in the logistics company's that owns New Zealand Couriers, completed a $45 million placement to repay debt and strengthen its balance sheet.

The company sold 18.45 million shares at NZ$2.44 apiece, it said in a statement. It will also offer shareholders the buy up to NZ$5 million of shares under a Share Purchase Plan.

Shares of Freightways last traded on April 6 at $2.78 and have slipped 13% in the past three months.

Dean Bracewell, managing director, said the company is "pleased with the support shown by investors."

The capital raising will reduce the company's net debt to $171.3 million, or 57% of book equity from 72%. Freightways reported a 1% gain in net profit to $16.9 million for the six months to Dec. 31.

Freightways joins companies including Fletcher Building and Xero in tapping investors for equity capital to strengthen their balance sheets in the face of the ongoing economic downturn.

Goldman Sachs JBWere was lead manager and underwriter for the Freightways placement.

Businesswire.co.nz

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