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

 

Suspended CBL warns capital raising will take weeks

Suspended CBL warns capital raising will need 'a number of weeks'

By Paul McBeth

Feb. 12 (BusinessDesk) - Insurer CBL Corp says it hasn't worked out how much capital it needs to raise to satisfy regulatory solvency concerns and may take "a number of weeks" to finalise any transaction.

The Auckland-based credit surety and financial insurance risk firm's stock has been suspended from trading on the NZX as the stock market operator tries to work out whether it's kept the market informed of material information and met continuous disclosure obligations. Trading in the stock was halted before the suspension with details eked out over subsequent days that prudential regulators in New Zealand and abroad questioned the adequacy of reserves for its French construction insurance division, prompting a credit rating downgrade and prospective capital raise.

Dual-listed CBL had already sought a voluntary suspension on the ASX to let it discuss the proposed capital raising with its major shareholders, and today it sought to extend that suspension.

"CBL is still working towards a capital raise, but the timing for this as well as the proposed amount have not been finalised, and are dependent on a range of factors including engagement with regulators and potential investors, which are likely to require a number of weeks," it said. "CBL will continue to update the market in this regard."

The stock last traded on the NZX at $3.17 before being suspended last week, more than twice the $1.55 price the shares were sold at in an initial public offering in late 2015.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Te Kuha: Govt Declines Application To Mine Conservation Land

An application to mine coal on public conservation land near Te Kuha in the Buller District has been declined, Minister of Conservation Eugenie Sage and Minister of Energy Resources Megan Woods announced today. More>>

ALSO:

Fieldays: Deer Milk Wins Innovation Award

Pāmu’s (formerly Landcorp) focus on innovation in the food business has been recognised at the 50th Fieldays, winning the Innovation Grassroots awards, with its ground-breaking deer milk product. More>>

ALSO:

Milking It: Regulator Concerned At Fonterra's Price Calculations

The Commerce Commission says it is concerned that the 'asset beta' Fonterra Cooperative Group uses to determine the farmgate milk price is too low, meaning it ends up paying its farmers a higher price for their milk than would be warranted under the company's enabling law. More>>

ALSO:

Antarctica: Waves Trigger Ice Shelf Collapse

Ocean waves following sea ice loss trigger Antarctic ice shelf collapse Storm-driven ocean swells have triggered the catastrophic disintegration of Antarctic ice shelves in recent decades, according to new research published in Nature. More>>

ALSO:

Housing: National Affordability Worsens

The major change that can be seen in the most recent data is worsening affordability for first-home buyers at that national level, driven by higher house prices in Auckland, Wellington, Christchurch, Hamilton and Tauranga. More>>

ALSO:

Avocados Are Toast: Prices Smash Records

Avocado prices rose 37 percent in May to record levels after a small harvest, Stats NZ said today. However, prices fell for other fruit and vegetables, such as mandarins and broccoli. More>>

ALSO: