Affco looks for cash

By Phil Boeyen, ShareChat Business News Editor

Friday 26th October 2001

Meat company Affco (NZSE: AFF) has announced plans to raise $11.25 million by a one for five rights issue.

The company says proceeds from the pro rata issue will be used for general corporate purposes, working capital and funding of capital expenditure.

The capital raising will be fully underwritten by the company's four largest shareholders and interests associated with management.

Affco will issue 45 million new shares to be offered at the price of 25 cents per share to all registered shareholders at the close of business on November 16.

The Auckland-based meat processor has been streamlining its operations for some months as it seeks a return to profit growth.

In September the company sold its meat marketing and trading subsidiary Mathias Meats in a management buyout and last week announced it was closing its US subsidiary as a cost-cutting measure.

Affco is due to report is full-year earnings for the year ended September soon. For the half-year to the end of March 2001 it reported a profit of just $752,000 on operating revenues of $559 million.

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