Australian ingredients firm to raise equity

- Last updated on GMT

Related tags: Stock market, Burns philp

Shareholders in Australian food ingredients group Burns, Philp
& Co Ltd backed a controversial A$240 million equity raising at
an extraordinary general...

Shareholders in Australian food ingredients group Burns, Philp & Co Ltd backed a controversial A$240 million equity raising at an extraordinary general meeting on Friday. Under the plan, Burns Philp will issue convertible preference shares at a discount to the current share price to repay convertible note holders two years ahead of time. The equity raising is part of A$1.14 bln refinancing for Burns Philp, which almost collapsed in 1997 after a failed global expansion, and will increase the stake held in the company by Rank Group, owned by deputy chairman Graeme Hart.The equity raising includes a A$107 million renounceable rights issue of converting preference shares and the issue of A$133 million converting preference shares as part payment to buy back the outstanding notes.Burns Philp shares were trading up 1.5 cents at A$0.42 shortly before midday (0200 GMT). Source: Reuters

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