Kagara Limited (ASX: KZL)
RIGHTS ISSUE UPDATE
Kagara is pleased to provide the following update on the one for one accelerated Non Renounceable Offer announced on 10 June 2009.
Following the successful institutional component of the offer which was completed on 11 June 2009, the Retail Entitlement Offer has now closed with acceptances well in excess of the A$40m underwritten component of the offer.
This brings the aggregate funds raised under the Initial Placement completed on 9 June 2009, the Institutional Entitlement Offer and the Retail Entitlement Offer to in excess of A$150 million before offer costs. Full details are expected to be released on Wednesday 8 July, after final reconciliations of retail acceptances have been completed.
Subject to FIRB approval, the Guangdong Foreign Trade Group Co Ltd through its subsidiary Goldsland Holdings Company Ltd (GFTG) will now subscribe for Kagara shares at A$0.60 per share to achieve a post raising equity interest in Kagara of 15%, potentially raising up to approximately an additional A$60m. GFTG has advised Kagara that it has received all necessary approvals to make the investment from the National Development and Reform Commission (NDRC), the key body for approving outgoing investments from the People?s Republic of China.
In addition, GFTG will be entitled to increase its equity in Kagara to 19.99% by subscribing for additional Kagara shares at A$0.80 per share by 10 August 2009.
Kim Robinson
EXECUTIVE CHAIRMAN
READ CORPORATE
Public Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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