ARV
25/06/2015 08:42
GENERAL
PRICE SENSITIVE
REL: 0842 HRS Arvida Group Limited (NS)
GENERAL: ARV: Arvida Placement Fully Subscribed
Arvida Placement to Fund Auckland Expansion Fully Subscribed
24 June 2015
Arvida Group Limited (ARV) is pleased to confirm it has received strong
support from local and offshore investors in the private placement undertaken
today to fund the $62 million acquisition of three Auckland villages.
Allocations were made to 15 institutions and a broad range of eligible NZ
retail investors.
The $30 million capital raising was placed at a price of $0.84 per share. The
settlement date for the new shares is Tuesday 30 June 2015.
Arvida CEO, Bill McDonald said, "It is very pleasing to see the market has
recognised the strategic value of the Aria acquisition and our expansion into
the Auckland market. The Aria villages are well established facilities with a
strong aged care focus and are situated in premium locations with strong
occupancy. They also provide further meaningful brownfield development
opportunities. We are now looking forward to extending the offer to eligible
shareholders via the Share Purchase Plan."
Peter Wilson, Chairman of Arvida further commented, "This represents an
important strategic acquisition for Arvida, providing us with a strong
presence in the country's most populous city. The addition of the three Aria
villages brings our total number of facilities to 20, with good geographical
spread through the country. The immediate focus for Arvida is now on
realising integration benefits with Aria and the wider portfolio and on the
brownfield development opportunities within the group".
The $5 million Share Purchase Plan (SPP) will offer each eligible shareholder
on the register as of the record date, 3 July 2015, the opportunity to
subscribe for up to NZ$15,000 worth of shares. The price of the SPP will be
the same as the placement price of $0.84. The balance of the $62 million
purchase price comes from the issue of new shares to vendor shareholders in
Aria and through existing debt facilities put in place at the time of the IPO
in anticipation of such expansion.
Further details of the SPP and the SPP booklet are expected to be sent to
shareholders early next month.
Forsyth Barr was the Lead Manager to the placement and Chapman Tripp provided
legal advice to Arvida. The placement was fully underwritten by Forsyth Barr
Group Limited.
- ENDS -
End CA:00266141 For:ARV Type:GENERAL Time:2015-06-25 08:42:42
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