capital raising and equity stake, page-2

AFR this morning. Gunns bankers will be thrilled.

Timber company Gunns has placed its shares in a trading halt until Wednesday, pending the completion of an equity placement and capital raising.

While the company has not provided any further details of its plans, it is understood that the fresh equity could amount to $200 million to $300 million.

A raising of this size would see the Tasmanian group emerge virtually debt-free. It is understood a wealthy Singaporean investor may be playing a role in the capital raising, which would shore up the company’s future to bring its pulpmill development to fruition.

It is believed that exisiting shareholders are supportive of the equity raising, details of which are still being worked upon.

Sentiment : Hold Gunns, Buy GNSPA