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Thursday 22nd October 2009 |
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Shares in financial services company Pyne Gould Corp. have been put in a trading halt as the company prepares its bookbuilding process for a share placement to raise $15 million to $30 million.
The placement to institutions comes after the company raised $237 million via a rights offer. Shareholders subscribed for 524.9 million new shares at $210 million and representing a take-up of about 88.7%. Some 66.6 million shares, a shortfall of $27 million, or 11.3%, will be taken up by underwriters First NZ Capital. Investors could buy six new shares for each one held at 40 cents apiece.
The shares last traded at 46 cents.The halt will remain in place until the NZX is advised of the outcome.
The Christchurch-based company underwent the capital raising as part of the reorganization of its balance sheet. The company’s plans to turn its finance unit Marac into a bank hit some wobbles when Standard & Poor’s downgraded the company’s credit rating below investment grade to BB+. The Reserve Bank requires banks to have an investment grade rating of BBB- or better.
Under the shuffle, Pyne Gould took $175 million of impaired loans from Marac’s books, taking an $85 million charge, with the remainder going into the Perpetual unit.
Businesswire.co.nz
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