Mount Gambier carrier K&S Corp to raise $26.4m for debts and expansion
- Wed Nov 24 00:30:00 EST 2010
MT Gambier carrier K&S Corporation hopes to raise $26.4 million to repay debt and pursue future expansion.
The non-renounceable share offer of one new ordinary share for every six existing K&S shares, will be valued at $2.15 a share and underwritten by Adelaide stockbroker Taylor Collison.
K&S Corp is also offering shareholders an opportunity to apply for new shares in addition to their entitlement at the same price.
"The capital raising will enhance K&S's balance sheet flexibility to ensure the company is well positioned to continue to pursue growth in new and existing markets," managing director Legh Winser said in the company's release to the Australian Securities Exchange.
Part of the proceeds would go to pay down debt related to its Pacific Transport and Regal Transport acquisitions, based in Western Australia, and purchased in January and July respectively, expanding its exposure to the mining sector.
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