Sharechat Logo

Dorchester raises $4.1 million in placement supported by major shareholders

Friday 7th June 2013

Text too small?

Dorchester Pacific has raised $4.1 million in a placement to institutions, with two major shareholders taking up an offer to sell down their own holdings in a secondary pool.

At total of 35 million shares were sold at 25 cents apiece to institutional investors, the financial services company said in a statement. That was made up of 16.3 million of new shares issued by Dorchester, 12.5 million sold by Business Bakery and 6.2 million by Matthew Harrison, the head of the EC Credit Control that the company acquired last year. The shares rose 3.5 percent to 30 cents on the NZX today.

The placement follows on from Dorchester investors electing to exercise 133.7 million out of a total 150 million options to buy shares at 12.5 cents each, raising $16.75 million. The uptake was bigger than Dorchester expected.

Business Bakery's holding will rise to 114.6 million shares, or 24.5 percent of the expanded capital, following the exercise of its options which must happen by July 31, from 47.1 million, or 22.6 percent currently. Harrison's holding will rise to 40 million shares, or 8.5 percent of the expanded capital subject to earn-outs, from 14 million, or 6.7 percent now.

The conversion of the options and share placement are expected to boost Dorchester's shareholder funds to $61 million by July from $29 million as at March 31, giving it headroom to look for acquisitions.

The options were part of a 2010 recapitalisation plan led by the Bakery Business, where some 7,200 investors owed about $84 million agreed to convert their debenture stock for four different types of security to keep the firm afloat.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Telecom will offer CEO and senior managers performance equity grants to boost profits
Former Fonterra executive Alison Andrew appointed to head Transpower
MRP director Miller, CFO Meek go trawling for cheap shares
Rob Fyfe to leave Trilogy board, seeks new senior role in NZ
David Ross appears at District Court hearing, remanded until Aug.29
Crown drops charge against ex-SCF finance chief Graeme Brown
Postie Plus appoints No 1 Shoes executive Binns as new CEO
Pumpkin Patch CEO Neil Cowie resigns to take job with rival retailer
George Alexander Louis
Time to Move Before You Get Caught in the Meridian Watershed