F&P receives applications of $25m for shares

Fisher & Paykel Appliances has received applications worth more than $25 million for shares offered to help fund its purchase of Italian cookware company Elba SpA.

Appliances announced six weeks ago that it was buying Elba from De'Longhi for €78 million ($162.4 million).

The company has already raised $55 million to help fund the deal through an institutional sharemarket placement.

Today it announced completion of the share purchase plan (SPP) component of the funding package. The plan provided eligible New Zealand and Australian-registered shareholders an opportunity to subscribe for shares.

Appliances today said it had received applications for more than $25 million worth of shares under the SPP.

Due to the demand, the company would scale all applications on a pro rata basis to raise $20 million in total.

The issue price had been set at $4.53, a 2.5 per cent discount to the average closing price on the NZ sharemarket in the previous 10 trading days.

Appliances chief executive officer John Bongard said the strong support of shareholders was a further vote of confidence in the company and its growth strategy.

The new shares, which would rank equally with existing shares, would be allotted.

Appliances shares were down 3c by late-morning to $4.67.

- NZPA