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Capstone sale could net $69m for Rubicon

By Nick Stride

Friday 27th October 2000

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Fletcher Challenge Energy may sell up to 650,000 of its Capstone Turbine Corporation shares as part of a secondary offering of the engine-makers' stock.

A sale at current prices - around $US43 ($106) - would net Fletcher Energy $68.9 million. The proceeds would go into Rubicon, the special vehicle set up, among other things, to contribute to the Forests division's recapitalisation.

The Commerce Commission is considering a second attempt by Royal Dutch/Shell to gain clearance for a key part of the Fletcher group breakup: the sale to Shell of the Energy division's New Zealand assets.

Fletcher Challenge (FCL) has said the Forests rights issue and share and capital notes placements will go ahead regardless of the commission's ruling.

Fletcher Energy has just over eight million Capstone shares, currently worth $850 million.

The FCL plan is to provide three million to Rubicon for sale to provide the funds to support Forests.

The rest are to be distributed pro rata to Fletcher Energy shareholders.

Capstone said this week it would issue a million new shares.

An additional six million shares from existing shareholders would also be offered for sale.

If Fletcher Energy participated in the secondary offering it would be entitled to sell up to 650,000 shares.

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