Pike River places $10m of shares

Photo / Greg Bowker

Pike River Coal said it has successfully placed $10 million worth of shares with institutions as part of previously announced plans to raise $50 million.

The company today amended the timetable for the capital raising it detailed yesterday, which also consists of a $40 million renounce able pro-rata rights issue.

The placement, which has closed fully subscribed, settles on April 23 when the new shares will be issued.

Existing cornerstone shareholders NZOG and Gujarat NRE are participating to maintain their current shareholdings. The company said yesterday that the shares would be sold at 88c in the placement part of the capital raising.

A prospectus for the rights offer was lodged with the Companies Office on April 20 and is expected to be mailed to shareholders and optionholders on May 3.

The capital raising is conditional on shareholders approving it at a meeting on May 7.

Yesterday the company said the rights issue offer would be two new shares for every 19 Pike River shares, and two new shares for every 19 Pike River listed options at a subscription price of 88c per new share.

Pike River chief executive Gordon Ward said the equity raising would provide funding through the ramp-up into hydro-mining operations and would also provide a cash buffer of $18m.

UBS and McDouall Stuart Securities were joint lead managers, with the rights issue to be fully underwritten by UBS, McDouall Stuart Group, NZOG and Gujarat.

- NZPA