Source: Radio New Zealand
123RF
Honey exporter Comvita is taking steps to recapitalise the business, with an offer of up to $30 million of new shares at 65 cents each.
“The capital raise and refinancing package mark a significant milestone for Comvita as we continue to execute against our strategic plan,” chair Bridget Coates said.
The offer details:
- 65 cents per share offer is a 4.4 percent discount to the last traded price of 68 cps.
- Rights offer of up to $30 million open to all eligible shareholders.
- Proceeds to repay bank debt, refinancing includes a $20m working capital facility.
- Partially underwritten by F&N Ventures, a subsidiary of Singapore-listed consumer group Fraser and Neave, who will join the Comvita register as a strategic investor with a 19.99% stake following completion of the offer.
Coates said package was the result of an extensive process to recapitalise the business.
“Together, they provide the stability and financial flexibility to build on the company’s improved position and deliver long-term value for shareholders.
“We are pleased to be delivering a structure that provides certainty and participation for all eligible shareholders while minimising dilution for those who do not participate – alongside the introduction of a new investor with genuine strategic relevance to the next phase of Comvita’s development.”
She said F&N’s entry to the Comvita register was a significant and deliberate component of the offer.
“We are excited about the opportunities that co-operation with F&N may present – including in channel and market expansion, digital, data analytics, new product innovation, R&D, sustainability and efficiencies across operations, supply chain and technology.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand