COLLINS FOODS COMPLETES $44 MILLION ENTITLEMENT OFFER
18 July 2017, Written by David Simmons
COLLINS Foods Limited (ASX: CKF), the largest operator of KFC restaurants in Australia, has successfully completed its $44.1 million entitlement offer.
The institutional component of the entitlement offer closed on 27 June 2017, raising approximately $25.9 million.
The retail entitlement offer, completed on 14 July, raised approximately $18.3 million and was backed by Collins shareholders.
As part of the retail entitlement offer, the KFC operator received applications from shareholders for approximately three million shares, representing 74 per cent of the offer.
Collins Foods CEO Graham Maxwell (pictured) says the outcome leaves Collins in a good position following recent acquisitions.
"The successful completion of Collins Foods' $44.1 million entitlement offer is an important milestone for the company and we would like to thank all shareholders and new investors who participated in the offer and supported the company in its acquisition of 28 KFC restaurants in Australia," says Maxwell.
Those 28 KFC restaurants were acquired from Yum! Brands Inc. for $110.2 million on 26 June.
Collins Foods is now the largest operator of KFC restaurants in Australia, with 223 KFC stores nationwide.
In addition to the $44.1 million fully underwritten entitlement offer, the food group relied on debt facilities totalling $69.3 million to acquire the 28 KFC restaurants.
At the time, Maxwell said the acquisitions provide Collins with an opportunity to expand in new territory.
"This acquisition provides an exciting opportunity for us to continue to grow in Western Australia and develop new growth platforms in Tasmania and South Australia," says Maxwell.
Collins Food also announced that Maxwell's salary will be increased to $800,000 for the 2018 financial year.
Author: David Simmons