Cinema and hotel operator Amalgamated Holdings (ASX:AHD) has announced plans to raise $107 million via a renounceable entitlement offer.
The offer will entitle Amalgamated investors to purchase new shares at a ratio of one new share for every five shares owned. Eligible shareholders will also be able to apply for new shares.
The offer has a fixed $4.10 offer price, which compares to Amalgamated’s trading price of $5.97 yesterday, prior to the announcement.
The funds will be used to pursue potential acquisitions, Amalgamated said. The company expects to maintain a dividend of 32 cents per share in FY10.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.