Affco holders in line for rights

Meat company Affco has announced a one-for-five rights issue for all shareholders at 25c to raise $11.25 million.

Affco said the capital raised from 45 million new shares would be used for general corporate purposes, working capital and funding of capital expenditure.

The fully renounceable issue is fully underwritten by the company's four largest shareholders and interests associated with management.

The issue will be made to all shareholders on the register at 5 pm on November 16 and applications will close on December 14.

Affco has 222 million shares on issue. They closed yesterday at 30c.

Executive chairman Sam Lewis said the company's profit in the year to September 30 would not improve from last year. However, the benefits of management changes would become apparent in the 2001-2002 year.

The company also announced that Michael and Andrew Talley of Talley's Group would join the board, replacing Don Clark and Michael Millar. Talley's owns 11.3 per cent of Affco.

- NZPA