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

 


Warehouse raises $100M from institutions

Warehouse raises $100 mln from institutions for financial services expansion

March 7 (BusinessDesk) - Warehouse Group, the country’s biggest listed retailer, successfully raised $100 million from institutional investors to help fund its drive into financial services.

The Auckland-based company sold the shares at $3.23, an 11 percent discount to its last trading price, to 15 local and Australian institutions and a broad range of eligible New Zealand retail investors, it said in a statement. The settlement date for the new shares is March 13. It will launch a share purchase plan to raise a further $15 million from existing investors on March 24.

“It is pleasing to see the market has recognised the value of our move into financial services,” chief executive Mark Powell said. “Investors have signalled that they endorse our business strategy and we are looking forward to extending the offer to eligible shareholders via the share purchase plan.”

Warehouse raised the funds yesterday to bolster its balance sheet as it looks to take a $3 million stake in Diners Club New Zealand and beef up its financial services offering. It had cash and equivalents of $42.6 million as at Jan. 26, generating net cash inflow of $19.9 million in the six month period after boosting its operational cash flow 64 percent.

The retailer hopes to emulate the likes of Target Corp and Tesco by encouraging customers to buy more of its products.

It expects to have $600 million of receivables by the 2020 financial year. The company currently generates about $400 million of receivables for third parties and its joint venture.

The shares will resume trading today, closing at $3.61 on Wednesday, and have slipped 3.5 percent this year.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news