Affco seeks more cash from shareholders

The company plans to issue 270 million new ordinary shares at an issue price of 10c each, to reduce debt and modernise its North Island plants. Affco ended down 4c to a new year low of 17c today.

Underwriting conditions are subject to approval from the Takeovers Panel and a shareholder meeting in late August. Affco's two major shareholders Talley's Fisheries and Toocooya Nominees Ltd have agreed to underwrite the issue and to take up their entitlements at 54 million shares and 50.5 million shares respectively.

Talley's current shareholding in Affco is 19.9 percent and Toocooya Nominees holds 18.7 percent.

Affco's third largest shareholder, Hugh Green Investments Ltd which holds a 10 percent stake, has also indicated its support for the issue.

An independent directors' report would be commissioned, Affco said.

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