SUNBIZ

VB Holdings To Raise $1m To Expand Business

VB Holdings Limited has announced a Rights Issue to shareholders for approximately $1 million to expand business and further strength the balance sheet of the company. Under the Issue, existing
15 Nov 2014 00:03

VB Holdings Limited has announced a Rights Issue to shareholders for approximately $1 million to expand business and further strength the balance sheet of the company.

Under the Issue, existing shareholders can apply for one new share for every five shares presently held, at a price of $2.80 per share.

This price is a 10.5 per cent discount to the current market price of VBH shares on the South Pacific Stock Exchange.

This Issue is fully underwritten by VB Holdings chief executive, Bob Niranjan, and will raise $997,553.

The funds raised with assist the company in expanding its Fleet Management services following recent successful tenders to Government and Corporate Organisations.

The funds will complement the new $10 million debt facility with Westpac that was announced by VB Holdings in July.

Shareholders who wish to subscribe for more shares than their entitlement will be allowed to apply on a priority basis for any shares not taken up other shareholders.

Any shares not taken up by shareholders will revert to the Underwriter. No brokerage fee is payable by investors on shares subscribed for in the Rights Issue. The Issue will be managed by Kontiki Stockbroking Limited (KSB).

Managing director of Kontiki Capital, the parent company of KSB, Griffon Emose, said: “The issue is an encouraging sign of the development of the stock market, especially in one of its core roles, as a source of capital for listed companies. ”

Mr Niranjan said: “We are very excited about the new growth opportunities for VBH and the rights issue will help the company to exploit these opportunities for the benefit of our shareholders.

“We are pleased to once again use the capital raising mechanism available to companies listed on the stock exchange and we look forward to our continued growth and development in the New Year.”

Feedback:  rachnal@fijisun.com.fj

 




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