Affco plans rights issue

By NZPA

Monday 1st July 2002

Troubled meat processor Affco Holdings Ltd today announced plans for a rights issue in the current financial year ending September.

The issue, to be underwritten by major shareholders Talley's Fisheries Ltd and Toocooya Nominees, will allow the company to complete upgrades at its North Island plants.

Affco executive chairman Sam Lewis said the terms and pricing of the rights issue and its underwriting agreements were being finalised, and would be submitted to the board for approval in the next month.

The company will make a full public announcement following the meeting.

Talley's and Toocooya have said they would fully subscribe their individual entitlements and help underwrite the issue, Mr Lewis added.

The funding would allow Affco to complete its operational and financial restructuring programme this year, including the completion of capital upgrades at the Moerewa, Wairoa and Manawatu plants. Affco posted a half year loss of $14.74 million for the period ending March 31, down sharply on the $752,000 profit recorded a year earlier.

Comments from our readers

No comments yet