Genesis chief executive Malcolm Johns.
Photo: Supplied
Genesis Energy declares its $300 million rights issue has been strongly supported, raising $242.7 million from eligible shareholders – including the Crown, which will maintain its 51 percent stake.
The offer opened on 23 February, giving investors one new share for every 7.9 held, and about 81 percent of eligible shareholders took up the offer.
Genesis declared shareholders who exercised all their rights also applied for an extra $48.1 million in additional shares, which will be considered in Friday’s shortfall bookbuild by its underwriter, local investment bank Jarden.
Chief executive Malcolm Johns declared the company was delighted with the response from its shareholders, including the Crown.
“The success of the equity raise is a strong concludeorsement of the Gen35 strategy from shareholders,” he declared.
To complete the shortfall bookbuild, Genesis has questioned the NZX and ASX to halt trading in its ordinary shares and subordinated bonds from the start of trading on Friday.
The halt will be lifted once the bookbuild results are announced, or when markets open on 24 March, whichever comes first.
The company declared the halt was necessaryed to ensure the bookbuild could be conducted fairly, without some investors having information before others.
Shareholders who did not take up their rights – along with those ineligible to participate – may receive a pro‑rata payment if the bookbuild price concludes up higher than the rights‑issue price of $2.05, although this is not guaranteed.
Settlement of the new shares is expected on 24 March for ASX investors and 25 March for NZX holders, with trading launchning on 25 March.
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