Tuesday 13th December 2011
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Metlifecare, the retirement village operator, has completed its $45.5 million capital raising, allowing it to repay debt and fund expansion opportunities.
The company completed the final leg of the fund raising, a $5.5 million share purchase plan, with existing holders buying $3.9 million of the shares and the balance offered to participants in its initial $40 million placement.
The move reflects a combination of investment opportunities in the retirement village sector, a $10 million debt reduction, and a desire to see the shares more widely owned and traded, with at present some 13 shareholders controlling almost the entire register, the company has said.
“Participating in this offer provided a further strong endorsement of the company and the strategic review initiatives we have undertaken to maximize value for all our shareholders,” said chairman Greg Flood.
Last month the company posted details of a strategic review, saying raising new equity capital would provide “financial headroom for growth.”
The company’s biggest shareholder, Retirement Village Group, reduced its stake to 51 percent from 82 percent at the same time as the new shares were sold.
Retirement Village’s shares sold for $2.10 a share, or $59.2 million, a discount to the $2.26 price the stock traded at before entering a halt for the capital raising. The shares fell 1.4 percent to $2.20 today.
Shares issued under the share purchase plan will be allotted today and the shares to the institutions are scheduled to be allotted on Dec. 15.
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