Select Harvests has announced that it has successfully completed a non-underwritten institutional share placement to raise A$45 million at $4.20 per share (Institutional Placement). The Institutional Placement was targeted to existing shareholders and significantly oversubscribed.
The Institutional Placement will result in the issue of 10.7 million new fully paid ordinary shares that will rank equally with existing Select Harvests shares.
The Institutional Placement will be followed by an offer to all existing eligible Australian and New Zealand shareholders to participate in a Share Purchase Plan (SPP). The SPP is expected to raise up to A$20 million and is not underwritten.
The proceeds from the Institutional Placement and the SPP will be used to reduce Select Harvests’ gearing from approximately 37.6% to 12.3%, or 52.5% to 24.4% including finance leases, following significant investment during FY2017, with the acquisition of Jubilee Orchards, orchard development costs and expenditure on other major projects.
Select Harvests’ Managing Director, Mr Paul Thompson, said: “We are pleased to announce the successful completion of the Institutional Placement, which was targeted to existing shareholders and significantly oversubscribed. Together with the SPP, the new capital will strengthen the Company’s balance sheet and provide the financial strength and flexibility to pursue our strategy of optimising our investments in productive long-term growth assets”.
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