CVT
12/11/2014 09:37
RIGHT
REL: 0937 HRS Comvita Limited
RIGHT: CVT: Rights Issue - Chairman's Letter to Ineligible Shareholders
Dear Shareholder
COMVITA RIGHTS ISSUE TO FURTHER STRENGTHEN OUR BUSINESS
Today we released our first half result for the 2015 financial year, and a
projection for our full year result ending 31 March 2015. In conjunction
with the result, Comvita has announced a 1 for 5 renounceable rights issue
under which Eligible Shareholders (i.e shareholders with a NZ registered
address) are entitled to subscribe for 1 New Share for every 5 Existing
Shares held on the Record Date of 21 November 2014.
Comvita considers that the legal requirements of other jurisdictions in which
Shareholders have a registered address (being Australia, Hong Kong, Korea,
Japan and the United States of America) are such that it would be unduly
onerous for Comvita to make the Offer in those jurisdictions.
However, your entitlement, and the entitlements of all other ineligible
Shareholders, has been issued to a Nominee who will endeavour to sell the
entitlement on your behalf. Your proportion of the net proceeds of the sale
(if any), less costs (calculated as 0.25% of the price at which rights are
sold) will be paid to you on the completion of the offer. If the Nominee is
unable to sell your entitlement your rights will become "Unexercised Rights"
and the New Shares attributable to those Unexercised Rights will be offered
for sale in a Shortfall Bookbuild which will be managed by Deutsche Craigs
Limited.
Eligible Bookbuild Investors who participate in the Shortfall Bookbuild will
bid for the New Shares attributable to the Unexercised Rights, with the
minimum bid that an Eligible Bookbuild Investor can submit being $3.55 per
New Share ("Issue Price"). If the Bookbuild Price exceeds the Issue Price,
the excess (i.e the premium) will be paid to the holders of the Unexercised
Rights less transaction costs (calculated as 0.25% of the Bookbuild Price).
Our improved financial position upon successful completion of the rights
issue will place Comvita in a strong position for further organic growth and
for acquisitions to enhance the future profitability of Comvita.
Over the last two years, Comvita has continued to focus on investments which
will further the business' strategic objectives. These include better
management of our supply chain and raw materials costs; and continuing to
build infrastructure and system capacity to deliver greater product volume
with improved efficiency. In addition, Comvita has invested to grow sales
through our global distribution channels, which enable us to represent and
position our valuable brand to capture premium margins. Our investments in
apiary businesses, infrastructure, systems, research and development, and in
growing and supporting the Comvita team are all consistent with these
strategies.
Our success in implementing these strategies over several years is evidenced
in today's announcement of increased projected sales and net profit for the
March 2015 financial year. We anticipate earnings per share growth to
continue over subsequent years.
I firmly believe the 'hard yards' that Comvita has completed over recent
years, particularly in improving security of raw materials supply and
increasing our business infrastructure, has positioned us well for the
future.
I thank you for your continued support of Comvita.
Yours sincerely
NEIL CRAIG
Chairman
Comvita Limited
End CA:00257541 For:CVT Type:RIGHT Time:2014-11-12 09:37:52
