Wormaid 2:1 cash issue seeks $60M

Press, 5 December 1986, Page 24

Wormaid 2:1 cash issue seeks $60M

PA Wellington Wormaid International NZ, Ltd, is to make a 2-for-l cash issue of 50c shares at a premium of 200 c (total 250 c a share) to raise just over $6O million. The capital increase follows last week’s appointment of Mr Lee Ming Tee as executive chairman and plans to rationalise the Wormaid group of companies. Of the total proceeds of $6O million, it is intended that about $4O million will go toward:—

® Acquiring from Wormaid International, Ltd (Australia), its full equity in a number of assets and operations in the Pacific Basin and Asian re-

gions, with the exclusion of Australia and India.

® Acquiring from Sunshine Australia, Ltd, Group, subject to Hong Kong regulatory requirements, up to 42 per cent of Sunshine Pacific, Ltd. The remainder of $2O million will be applied to acquisitions as opportunities arise and increased working capital for the expansion of the local Wormaid International NZ operation. The acquisitions from Sunshine Australia and Wormald International will be based on independent professional valuations.

It is also proposed that Sunshine Pacific, which is listed on the Hong Kong Stock Exchange, will be

renamed Wormaid Pacific, Ltd.

The whole of the issue has been underwritten and while Wormaid International has made arrangements to reduce its percentage investment in the company to 49.89 per cent, it will be subscribing for its full entitlement to maintain its shareholding at this level. This leaves about $3O million to be subscribed for by existing and new investors.

It is expected that the issue will close on February 16, 1987.

The new shares issued will not rank for the interim dividend for six months to December 31, but will rank equally in all other respects.