AWF
23/02/2015 08:30
RIGHT
PRICE SENSITIVE
REL: 0830 HRS AWF Group Limited
RIGHT: AWF: AWF Announces Rights Issue
23 February 2015
FOR IMMEDIATE RELEASE
AWF Group Announce 1:4 Rights Issue
AWF Group Limited ("AWF") today announced it intends to raise approximately
$14 million of new equity capital by way of a 1:4 pro rata renounceable offer
of new shares to existing shareholders ("Rights Offer"). The Rights Offer is
fully underwritten by Deutsche Craigs.
AWF intends to use the proceeds from the Rights Offer to repay bank finance
previously borrowed by the company to finance the acquisition of Madison.
Ross Keenan, Chairman of the Board, said "As previously announced to
shareholders, the Board undertook to consider an equity capital raising, to
reduce the company's debt levels it assumed on the acquisition of Madison,
once it had validated the transaction and its integration into the AWF Group.
Madison has now successfully completed its first year under AWF ownership and
the Board considers this to be the right time to proceed with this equity
raising".
This Rights Offer provides shareholders with an opportunity to participate on
a pro-rata basis. The Board considers this to be the fairest structure to all
shareholders.
The record date for determining entitlements is 5.00 pm on 4 March 2015, with
the opening date for the Rights Offer being 11 March 2015. The rights will
trade under the code of AWFRA on the NZX Main Board from 2 March with the
last day of rights trading being 20 March 2015. The closing date for the
Rights Offer is 5.00pm on 26 March 2015, with allotment and issue of the new
shares on 31 March 2015.
The Rights Offer is only open to "Eligible Shareholders", being persons who
have registered addresses in New Zealand on the record date and persons who
do not have registered addresses in New Zealand on the record date but who
AWF is satisfied can participate in the Rights Offer in compliance with all
applicable laws. Under the Rights Offer, Eligible Shareholders are entitled
(but not obliged) to subscribe for 1 new share for every 4 existing shares
held at the record date, at a price of $2.10 per share (with entitlements to
fractions of a share rounded down to the nearest whole number). The new
shares will rank equally with existing ordinary shares for future dividends.
Further details relating to the Rights Offer will be provided in the offer
document relating to the Rights Offer which will be released through NZX when
the Rights Offer is made, together with an entitlement and acceptance form.
These are to be mailed to Eligible Shareholders on 10 March 2015. Eligible
Shareholders should carefully consider the offer document. Subscriptions
under the Rights Offer must be lodged with the share registrar, Link by
5.00pm on 26 March 2015. Those shareholders electing to sell all, or some, of
their rights entitlement will need to do so prior to the end of the rights
trading period at 5.00pm on 20 March. Shareholders should exercise care in
respect of any rights trading before they receive their entitlement and
acceptance form and should be aware that AWF has the right not to make nor
proceed with the Rights Offer.
The offer document will be made available, and able to be downloaded from,
NZX Limited's website www.nzx.com under stock code AWF from 2 March 2015.
Application has been made for permission to quote the rights on the NZX Main
Board and all the requirements of NZX Limited ("NZX") relating thereto that
can be complied with on or before the date of this announcement have been
duly complied with. The new shares will be quoted on the NZX Main Board upon
completion of allotment procedures. NZX accepts no responsibility for any
statement in this announcement.
NZX Main Board is a financial product market operated by NZX, a licensed
market operator, under the Financial Markets Conduct Act 2013.
For the Board
Ross B. Keenan
Chairman
-ENDS-
Announcement authorised by:
Paul Mens
Chief Financial Officer
AWF Group Limited
Direct Dial: +64 9 526 2646
Mobile: +64 21 992 532
End CA:00260961 For:AWF Type:RIGHT Time:2015-02-23 08:31:20
