by: Matt Chambers From: The Australian April 05, 2012 12:00AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these?
BILLIONAIRE Queenslander Clive Palmer may still end up with 10 per cent or more of onshore oil and gas explorer Central Petroleum, with rumours continuing to swirl that he will secure most of the stock and options in capital raising worth up to $19 million.
Yesterday, Central said it had raised $11m worth of shares at 8.5c a share in a sale to a "very limited number of globally significant institutions".
Central shares finished unchanged yesterday at 10.5c.
The unnamed institutions, of which there are believed to be three, will also be issued with one three-year option at 12.5c for every two new shares they take up, adding another potential $8m to the raising.
Central was not saying who was behind the raising, and Mr Palmer was not confirming or denying the move, but there was growing speculation that he would add to an existing 4 per cent stake through buying more shares from the institutions in the raising.
It is understood Mr Palmer, who has recently acquired his stake on-market through a company called Petroleum Nominees, was in talks with Central earlier in the year about taking a bigger stake in the Perth-based junior.
The move comes as former Central managing director John Heugh backs a shareholder move to overthrow the board. He is challenging its decision to remove him in the West Australian Supreme Court.
Central said the placement would be used for appraisal and potentially drilling work on the Surprise prospect in the Amadeus Basin near Alice Springs.
Patersons, which recently valued the stock at 20c a share, managed the placement.
The issue of the options will be voted on by shareholders.
CTP Price at posting:
52.5¢ Sentiment: None Disclosure: Held
