MOVE announces $40m capital raise

MOVE Logistics Group Limited (NZX: MOV) has announced its intention to raise approximately NZ$40m of new capital via a fully underwritten 1 for 3.06 accelerated renounceable entitlement offer (Offer).

The proceeds of the Offer will provide balance sheet flexibility to enable MOVE to accelerate its brand refresh, complete its business restructure, fund further capital initiatives (including in information technology systems), modernise the fleet and enter into intermodal equipment and maritime leases.

Chair of MOVE, Lorraine Witten, said: “MOVE is one of New Zealand’s largest logistics companies. In recent months, we have undertaken a strategic review and commenced a business realignment to build on MOVE’s substantial logistics and distribution network, unlock value and maximise shareholder returns. We have identified significant unrealised potential to deliver growth and have a clear strategic plan in place.

“The changes we have implemented and continue to make to our business, combined with raising additional capital through the Offer, will have us well positioned to execute on our strategy and accelerate growth via organic opportunities. We are excited about the potential in, and for, our group, as we move ahead with our new strategy, the execution of identified and potential acquisition targets and a continued commitment to our customers, our people, safety, sustainability and shareholder returns.”

Key Highlights:

• Strategic review undertaken and business realignment underway to build on MOVE’s substantial logistics and distribution network, unlock value and maximise shareholder returns
• Focus on increasing total earnings and lifting margins
• Significant unrealised potential identified to deliver growth through organic opportunities and execution of identified and potential acquisition targets
• Rejuvenated Board and leadership team with recent additions bringing extensive industry experience and deep sector knowledge
• Post the capital raise, MOVE expects debt leverage to be in line with sector peers, providing balance sheet flexibility to enable MOVE to accelerate its brand refresh, complete its business restructure, fund further capital initiatives (including in information technology systems), modernise the fleet and enter into intermodal and maritime leases.

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