Downer raises $ 200 mil­lion in rights of­fer

Townsville Bulletin - - Investor -

EN­GI­NEER­ING and in­fra­struc­ture man­age­ment firm Downer EDI Ltd has raised about $ 200 mil­lion from in­sti­tu­tional in­vestors as part of a $ 279 mil­lion cap­i­tal rais­ing.

Downer had an­nounced the one-for-four re­nounce­able rights of­fer at $ 3.25 per new share, on Fe­bru­ary 28.

Downer said t he f unds raised would strengthen the com­pany’s bal­ance sheet and en­able it to pur­sue growth op­por­tu­ni­ties.

Downer, headed by chief ex­ec­u­tive Grant Fenn, said yes­ter­day it had re­ceived strong sup­port from in­sti­tu­tional in­vestors, who took up about 97 per cent of their en­ti­tle­ments.

An in­sti­tu­tional book­build re­sulted in a clear­ing price of $ 3.75 per new share, a pre­mium of 50 cents to the of­fer price.

In­sti­tu­tional share­hold­ers who did not take up their en­ti­tle­ments and in­el­i­gi­ble in­sti­tu­tional share­hold­ers will re­ceive 50 cents for each new share not taken up.

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