Some clarity on the $200 million placement according to the Financial Review yesterday.
NewSat in quest for $200m funds 18 JUNE 2012 | THE AUSTRALIAN FINANCIAL REVIEW | SARAH THOMPSON AND ANTHONY MACDONALD PRINT: 18 JUNE 2012 | PAGE 16 | NEWSAT IN QUEST FOR $200M FUNDS Small-cap satellite owner NewSat is expected to head offshore next week in an effort to raise $200 million and effectively double its market capitalisation.
The offer is expected to be priced at a set discount to Newsats five day volume weighted average heading into the egm. It is understood that Newsat may also conduct a small share purchase plan to offer existing shareholders new stock at the offer price
Existing Newsat shareholders will be asked to approve the $200m placement at a egm in the second half of July
Newsat and its advisors Morgan Stanley and EL&C Baillieu are expected to head off shore to meet with institutions in the coming weeks
I would have thought the there would have been substantial interest from the well heeled with a lazy 200m to buy half a company that is being presented to you with all its ducks lining up. I am not sure that in the current challenging market place there would be too many other opportunities with the profit potential as newsat which just need your $ to cross the last T.
I also think the management have got this right by being able to now present the Newsat offer with the usa funding virtually in place and not the other way around where there would be greater uncertainty for the purchasers and therefore presumably the placement discount would be higher.
All we need now is for the share price to regroup and resume its position so there are less shares issued to cover the $200m
cheers billdah
NWT Price at posting:
69.0¢ Sentiment: Hold Disclosure: Held
