News: Gunns inks $280m raising

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Gunns Limited (ASX:GNS) has signed a term sheet with Kiwi billionaire Richard Chandler for a capital raising of $150 million, sending its share price soaring 60 per cent, or 7.5 cents, to 20 cents.



In a statement, the company says that if the rights issue is wholly subscribed for, it will raise $130 million, bringing the total raising to $280 million.



Chandler’s senior advisor Alan Kelly says he sees Gunns’ future as building a foundation for sustainable development and economic growth.



The Richard Chandler corporation has proposed to accelerate operations at the Bell Bay Pulp Mill.



Gunns booked a net loss of $355.5 million in the 2011 financial year.