Transurban to Raise Up to A$998 Million, Cut Dividend Payouts
By Garfield Reynolds
June 19 (Bloomberg) -- Transurban Group, an Australian toll- road owner, plans to raise as much as A$998 million ($944 million), partly by selling shares, and reduce dividend payments to improve its balance sheet amid the global credit squeeze.
The company is seeking to raise A$659 million by selling an 11 percent stake in itself to institutional investors for A$5.49 a share, the Melbourne-based company said today in a statement.
A further A$239 million will be raised by offering holders the chance to reinvest dividends and as much as A$100 million may come from a rights offer at a similar price to the 11 percent stake sale, the company said. UBS AG is arranging the share sale and will underwrite 75 percent of the second-half dividend plan.
Transurban Chief Executive Officer Chris Lynch, hired in October, also said dividends will be reduced next financial year. The company estimates it will pay 22 Australian cents a share for the 12 months ending June 30, 2009.
To contact the reporter on this story: Garfield Reynolds in Sydney at [email protected]
Last Updated: June 18, 2008 21:12 EDT
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