Wednesday, 12 May 2010
CSG Limited (CSG) is pleased to announced that it has raised $40 million through an institutional placement of approximately 21 million new shares to institutional and sophisticated investors (Offer) at $1.90 per share (Offer price).
Settlement of these shares is scheduled to take place on 17 May 2010. The Offer was well supported with very strong demand from both existing and new institutional investors.
Proceeds from the Offer will be used to
- partially fund payment to Canon Australia;
- fund the previously announced acquisition of Leasing Solutions Limited;
- fund the acquisition of Aaromba Technologies Pty Ltd; and
- provide additional working capital, increased financial flexibility and to pay for costs associated with the Offer
The Offer price of $1.90 per share represents a 11.6% discount to CSG’s closing share price on 11 May 2010 and a 7.9% discount to the 5 day VWAP1.
Commenting on the Offer, CSG Managing Director Mr Denis Mackenzie said: “The support by new and existing shareholders in the Offer is a strong endorsement of CSG’s strategy. The new initiatives are in line with CSG’s long term growth strategy and provide our print services business with a strong foundation for future growth.”
Share Purchase Plan
CSG will offer eligible shareholders the opportunity to subscribe for up to A$15,000 in CSG Limited shares per shareholder at the Offer price of $1.90 per share under a Share Purchase Plan (SPP). CSG Limited reserves the right to scale back applications under the SPP, at its discretion, if total demand exceeds $3.0 million. Participation in the SPP is open to all holders of CSG shares as at 7.00pm (AEST) on 14 May 2010 whose registered address is in Australia or New Zealand. Applicants under the SPP will not incur brokerage or other transaction costs. The SPP is not underwritten.
Full details of the SPP will be set out in the documentation to be sent to eligible shareholders shortly.
Full announcement