Bega signals growth

BEGA Cheese is launching a $160 million capital raising program to have cash on hand so it’s ready for yet more growth.

Bega, which in January spent $460 million on a suite of brands including Vegemite, said yesterday it would use the proceeds of the raising to improve financial flexibility to take advantage of future growth opportunities.

The company wants to raise about $122.5 million from an institutional placement, and another $37.5 million from a share purchase plan open to all existing shareholders.

“This capital raising gives us the financial strength and flexibility to grow our dairy and food businesses as part of our vision to be a great Australian food company,” executive chairman Barry Irvin said. AAP