October 30, 2009
AWB completes US$220 million component of entitlement offer
Australian agribusiness AWB Ltd. said Friday (October 29) it successfully completed its entitlement offer, raising A$459 million (US$420.06 million) from the issue of new shares at A$1 each.
The 241 million new shares (US$220.57 million) in the retail component will start trading Monday, with the balance raised from institutions, the company reported.
The capital raising was undertaken to reduce debt, strengthen the balance sheet and provide greater financial flexibility, Managing Director Gordon Davis said in a statement.
Discussions with a global commodities company on the sale of AWB's Geneva-based business and the partnering of its Australia Commodities Management unit are continuing, as are talks with a preferred party for the sale of the Hi-Fert joint venture and discussions about an alternative funding model for Landmark Financial Services, he said.
