C.S.R. to raise s4om

Press, Volume CXV, Issue 33964, 3 October 1975, Page 13

C.S.R. to raise s4om

Zealand Press Association—Copyright)

SYDNEY. C.S.R., Ltd, is re-entering the equity capital market, making a one-for-five premium issue, which will raise about sAust4o.2m.

It will be offered to shareholders on October 27, and the 100 c shares will carry a premium of 100 c. The share issue breaks a capital-raising pattern in which the accent of most major Australian companies, including C.S.R., has been on fixed-interest borrowings. The last call by C.S.R. on equity capital was in 1970, when it raised s23m with an issue also at a one-for-five ratio, and a 200 c issue price. Since then its equity capital has been increased by one-for-eight. and one-for-five bonus issues. Its additional new funds have come from note, debenture, and other fixed interest raisings on the Australian and overseas markets.

Since April 1. C.S.R. has 'raised SUS2Sm with an issue lof five-year notes on the

Eurobond market, and has arranged a SUS4Sm termloan from the Australian Industry Development Corporation, which superceded a SUSI3m floating rate loan facilitv provided by the A.I.D.C. Even with these issues the gearing ratio (the proportion of its long-term debt to total shareholders’ funds plus longterm debt) of C.S.R. remained low after being 25.8 per cent at March 31, compared with 30.3 per cent four years earlier. Coupled with the Eurobond market and A.LD.C. raisings, the new equity issue brings the disclosed capital raisings during 1975-76 to more than sBsm. The capital spending programme of C.S.R. for 1975-76

is between ssom and sloom, and covers expansion of its Queensland sugar mills, expansion and upgrading of its sugar refineries, mineral activities, and provision of new plant and equipment at building material factories, and distilleries. The directors expect to maintain the current 15 per cent dividend rate on increased capital of about sl2lm. The new shares will rank for the full final dividend if they are fully paid by December 1, or for half the final if paid in instalments of 100 c on December 1 and 100 c on March 29. At Wednesday’s closing price of 460 c, the rights have a theoretical market price of about 209 c after allowing for dividend differences.