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

 

Seeka announces capital raising to pursue growth strategy

Seeka Limited [NZX:SEK] has announced a new capital raising strategy to be implemented over the course of the next three years, including a Rights Issue, an issuance of shares under a new Grower Share Scheme and an issuance of shares under Seeka’s existing Employee Share Ownership Scheme.

The purpose of this capital raising strategy is to strengthen its balance sheet and provide Seeka with the financial flexibility and freedom to pursue its growth strategy of becoming New Zealand’s leading orchard-to-market business.

The first step is for Seeka to undertake a fully underwritten pro rata renounceable Rights Offer commencing on 21 November 2018 and closing on 7 December 2018.

This Rights Offer:

• Seeks to raise approximately NZ$50 million of new equity via a pro rata 1 for 1.5 Rights Offer at NZ$4.25 per share (fully underwritten by First NZ Capital Group Limited).
• Includes a bookbuild to be undertaken at the end of the Rights Offer period for any shortfall. As a consequence, shareholders not taking up all of their rights (including ineligible shareholders) may receive value for their rights not taken up.
Seeka also announces its intention to introduce a new Grower Share Scheme and Employee Share Scheme in the first quarter of 2019 to further align the interests of Seeka, its employees and grower suppliers (many of whom are shareholders).

Chairman of Seeka, Fred Hutchings, said: “We are excited about Seeka’s plans for growth and our continual pursuit towards being New Zealand’s leading orchard-to-market business. Seeka will use the capital raised to strengthen our balance sheet, repay bank debt, undertake planned capital expenditure and give us greater financial flexibility and freedom to deliver better value for our shareholders.”

Rights Offer and Bookbuild

Under the Rights Offer, eligible shareholders are entitled (but not obliged) to subscribe for 1 new share for every 1.5 existing shares held as at 5.00 pm on the record date of 20 November 2018, at an issue price of $4.25 per new share. This represents a 25.4% discount to the closing share price on the NZX on 9 November 2018 and a 17.0% discount to the theoretical ex-rights price (TERP) of $5.12 per share, post the Rights Offer, based on the pre-announcement close of $5.70.

Eligible shareholders may choose to take up all, some or none of their rights. Any rights that are not taken up (including rights of ineligible shareholders) will be offered for sale through a bookbuild at the end of the Rights Offer period. Eligible retail shareholders that have taken up all of their rights will have the opportunity to participate in this bookbuild alongside institutional investors. Rights will not be quoted on the NZX Main Board - there will be no licensed market on which shareholders can sell their rights.

Full details of the Offer will be sent to eligible shareholders from 21 November. Information on the Offer, including the Offer Document released on the NZX market announcement platform on Monday, are available at www.seekashareoffer.com or on the NZX by searching Seeka’s stock code (SEK) at www.nzx.com/companies/SEK.

Existing New Zealand shareholders will have a preferential position in the bookbuild should they wish to subscribe for more shares than their entitlement under the Rights Offer.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: