Investors fund Seven Group bid

SEVEN Group Holdings will tap investors for $400 million to help it buy out equipment hire company Coates Hire.

The Kerry Stokescontrolled company yesterday said it would conduct a fully underwritten $375 million placement of ordinary shares, along with a $25 million nonunderwritten share purchase plan.

Seven Group said the equity raising was prompted by the “overwhelmingly positive” investor feedback on Wednesday following its decision to buy the 53.3 per cent of Coates Hire it does not already own for $517 million.