Kerry Stokes' Seven Group Holdings increases its share in Estia Aged Care
The Australian newspaper is reporting the company, chaired by Kerry Stokes (pictured), is the sub-underwriter for the retail share of Estia's current capital raising. Seven Group already had a stake in the private operator, but the move will likely...
The Australian newspaper is reporting the company, chaired by Kerry Stokes (pictured), is the sub-underwriter for the retail share of Estia's current capital raising.
Seven Group already had a stake in the private operator, but the move will likely see its shareholding rise above 5% after the share offering is completed.
Estia had already raised $72M through an institutional offering of $2.10 per share last month. The non-renounceable retail offer, which closes tomorrow and is being underwritten by Macquarie Capital, is aiming to raise a further $65M.
The story highlights the fact a retail offer usually falls short of expectations, giving the senior sub-underwriter the chance to pick up the remaining shares.
Its also unusual for only one company to act in the sub-underwriter role, leading to speculation Seven plans to build a bigger stake in Estia.
Estia plans to use the money raised to reduce its debts, with the target of an EBITDA of $86 to $90M for FY17.
Link:
http://www.theaustralian.com.au/business/companies/seven-group-holdings-set-to-increase-stake-in-estia-health/news-story/e4fd71d6cf45551f64e806058963e9bc
Image credit: Jane Dempster.
