CARDNO ANNOUNCES CAPITAL RAISING

Written on the 2 June 2016 by Brisbane Business News

CARDNO ANNOUNCES CAPITAL RAISING CARDNO has announced a capital raising to reduce debt and lower its leverage ratio.

The capital raising will be fully underwritten to A$92.5 million.

Funds will be raised through an accelerated institutional entitlement offer and a retail entitlement offer with a retail over-subscription facility.

The entitlement offer price is 40c per new Cardno share.

Cardno expects to be in compliance with its debt covenants at 30 June 2016 after the impact of the entitlement offer.

Richard Wankmuller, managing director of Cardno, says the company will reduce its net debt from $311 million in June 2015 to a forecast $91 million at June 2016.

"The financial risk of the business has materially reduced," says Wankmuller.

"Our objective is to ensure Cardno is building a leading engineering and environmental professional services business focused on the commercial needs of its clients.

"Cardno cannot be focused on short term covenant issues and medium term organic growth at the same time this capital raising places Cardno in a strong position to rebuild value for shareholders in the medium term."

Crescent Capital Partners, currently a 41.4 per cent shareholder in Cardno, has committed for up to 30.5 million shares above its pro-rata entitlement of 95.8 million shares.

This could increase Crescent's interest to a maximum of 47.8 per cent.

Under the entitlement offer, eligible shareholders are invited to subscribe for 1 new Cardno share for every 1.07 existing Cardno share.

Approximately 231 million new Cardno shares will be issued under the offer.

Institutional shareholders can participate from Thursday 2 June to Friday 3 June, while retail shareholders can participate between Wednesday 8 June and Monday 20 June.



Author: Brisbane Business News Connect via: Twitter

Latest News

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter