Business news : BILLABONG COMPLETES $225 MILLION CAPITAL RAISING
Under the Entitlement Offer, eligible shareholders were invited to participate pro-rata to their existing holdings by subscribing for 6 new Billabong ordinary shares for every 7 existing Billabong ordinary shares, at a price of $1.02 per New Share. Under the retail component of the Entitlement Offer, Billabong received applications from eligible retail shareholders for approximately $35.4 million for New Shares, which represents a take-up of approximately 51% of total retail entitlements. The shortfall of 33,219,619 New Shares not taken up under the Retail Entitlement Offer will be issued to (or as directed by) the underwriters, Goldman Sachs Australia Pty Ltd and Deutsche Bank AG, Sydney Branch under the terms of the Underwriting Agreement.
Billabong’s CEO, Launa Inman, commented: “The Company is pleased with the support shown by our retail Shareholders for the Entitlement Offer. The Retail Entitlement Offer completes an important capital raising for Billabong, allowing the Company to focus on the next phase of its strategy”.
As announced on 29 June 2012, the institutional component of the Entitlement Offer raised approximately $156.1 million. The proceeds from the Institutional Entitlement Offer combined with approximately $69.3 million raised from the Retail Entitlement Offer, brings total proceeds from the Entitlement Offer to $225.4 million.
Final allocations are subject to a reconciliation and audit process currently being conducted by Billabong’s share registry. The allotment of New Shares to be issued under the Retail Entitlement Offer will be completed by Thursday 26 July 2012. The New Shares will commence trading on the Australian Securities Exchange on Friday 27 July 2012. Holding statements will be dispatched from Friday 27 July 2012.
( source By Press Release. / through asbmag.com)