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

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter