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 …
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