Pyne Gould, the investment and finance group with ambitions to become a bank, plans to raise as much as $270 million in a rights offer at a 60 per cent discount, seeking to restore a balance sheet eroded by write-downs on property loans. Its shares soared 18 per cent.

The fund raising includes a renounceable rights offer of six new shares for every one held at 40 cents apiece, to raise $237 million, the company said in a statement. The offer is fully underwritten by First NZ Capital. Pyne Gould then plans to raise $15 million to $30 million in a placement to institutions and launch a Share Purchase Plan for up to $5,000 shares per shareholder.

“The recapitalisation provides the foundation for future growth,” chief executive Jeff Greenslade said.

Pyne Gould is betting on a revival in sentiment for the company once it pays down debt and emerges with a stronger balance sheet. Among companies that have been rerated after being forced to sell shares at a deep discount are Nuplex Industries and Fisher & Paykel Appliances.

Pyne …

Read the original article at nzherald

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

Most Commented Posts

More similar stories:

  1. Pyne Gould shares plunge ahead of capital raising
  2. Pyne Gould’s Torchlight comes to Sth Canterbury’s aid
  3. Rakon unveils $65m capital raising for China push
  4. PGG rights offer accepted
  5. New consumer agency would require banks to offer ‘plain vanilla’ mortgages
  6. Shares: the winners since April
  7. Telecom shares fall in early trade
  8. Diary of a Private Investor: Shares to boost my overseas exposure
  9. ‘I have begun taking profits from shares that are heavily dependent on the consumer’
  10. NZ shares slip early

  • John Lewis staff share £151m bonus pot
  • Brits get savvy as holiday season approaches
  • Consumers owe energy suppliers £728 million
  • Rates cut again by Santander
  • Dodd to offer his own financial regulation bill
  • FSA to introduce tougher stress tests for banks

Leave a Reply