Goodman Fielder to tap shareholders for A$259 mln in discounted offer
Goodman Fielder, which posted a full-year loss after taking a charge against its baking division, plans to raise A$259 million via a discounted rights offer to strengthen its balance sheet.
The Sydney-based food manufacturer today announced a five-for-12 pro rata renounceable entitlement offer at 45 Australian cents apiece. The offer is fully underwritten, it said. The shares were last at 59 cents before being halted for the capital raising.
In August, Goodman reported an annual loss of A$166.7 million, including a A$300 million charge against its baking assets. The company has struggled to maintain profitability in the face of rising ingredient costs, while at the same time dealing with a competitive retail environment that forced significant discounting.
The company has a strategic review underway which is targeting annual cost savings of A$15million. The entitlement offer is “a prudent and necessary step to strengthen the company’s balance sheet in expectations of future restructuring and operational initiatives,” it said in today’s statement.
Eligible shareholders can purchase five new shares for every 12 held. The institutional component opens today while the retail offer opens on Oct. 4.
Shares of Goodman Fielder have declined 55% on the ASX in the past 12 months. The stock is rated a ‘hold’ based on the consensus of 12 recommendations compiled by Reuters.
Comments from our readers
No comments yet
Add your comment:
Goodman Fielder 1H profit more than doubles on asset sales; revenue falls
Goodman Fielder to sell Integro unit for A$170M to GrainCorp consortium
Goodman Fielder scotches media reports of approach from Wilmar
Goodman Fielder, selling assets and taking charges, narrows annual loss
Goodman Fielder's earnings to be at lower end of guidance
Wilmar targets 10% stake in Goodman Fielder, keen on buying non-core assets
Goodman Fielder 1H profit slumps 77%
Goodman Fielder refinances A$500 mln bank facilities
Goodman Fielder retail offer comes up short
Goodman Fielder merges 3 NZ divisions, names Peter Reidie local managing director