United Malt taps investors for $165m as beer sales suffer in lockdown
United Malt, one of the world’s largest maltsters, also unveiled plans to cut costs by about $10 million in the second half of this financial year, including a 20 per cent cut in directors’ fees and the base salary for the group’s senior executives for the rest of the financial year. It will also defer $5 million of capital expenditure.
The company is seeking to sell $140 million in new shares via a fully underwritten placement to fund managers, with the new shares priced at $3.80 apiece, 11.4 per cent cheaper than the company’s last trading price of $4.29 on Wednesday.
The stock went into a trading halt for the capital raising on Thursday morning before the market opened, and is expected to remain in a halt until Monday.
In addition to the $140 million placement with institutional investors the maltster will undertake a share purchase plan for retail shareholders that aims to raise up to $25 million. Retail investors will be able to buy up to $30,000 of new shares.
The company also released its first half results on Thursday, reporting an underlying net profit of $28.5 million. Revenue for the half rose 9 per cent from the prior corresponding period to $664.4 million.