Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Refining raises $48M in placement at 4% discount

NZ Refining raises $48M in placement at 4% discount for funding flexibility

March 3 (BusinessDesk) – New Zealand Refining raised $48 million in a placement of new shares at a 4 percent discount to give the nation’s only oil refinery more funding flexibility as it invests in new capacity in the face of volatile refining margins and exchange rates.

The Whangarei-based company sold the shares to institutions after the close of trading on Friday at $1.68 apiece. The stock ended trading last week at $1.75 and has declined 15 percent this year.

NZ Refining said in a statement that its current debt funding facilities were sufficient to meet its capital spending needs, which include the $365 million Te Mahi Pou project, begun in 2012, to build a new continuous catalyst regeneration platform (CCR) at Marsden Point. The expansion is expected to lift the refinery’s share of New Zealand’s petrol market to 65 percent from 55 percent.

It will also offer existing shareholders the opportunity to buy up to $15,000 each of new shares via a share purchase plan, which has a record date of March 12 and opens on March 17.

“The combination of the placement and the underwritten component of the share purchase plan is a prudent move by the board to manage our balance sheet while we face lower New Zealand dollar refining margins coupled with the construction of Te Mahi Hou” chairman David Jackson said.

The placement was managed and underwritten by First NZ Capital, which is also underwriting the share purchase plan up to $5 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news