VDM aiming for $35M

The combined capital raising includes a placement of 10 million shares at 50c each to raise $5 million, a fully underwritten renounceable entitlement offer to VDM Group shareholders on a three for seven basis at an issue price of 42c per share to raise about $25 million, and a second placement of 10 million shares at 47.5c to raise a further $4.75 million.Chairman John Saleeba said the proceeds of the capital raising will be used to reduce bank debt and augment working capital for expected future growth. “VDM Group will pay down $15 million of its bank debt, reducing gearing levels to 30 per cent,” he said. “We plan to pay down bank debt by a further $16 million by June 30, 2010, through cash flow and non-core asset sales.”VDM currently has more than $340 million of work in hand, with some $300 million set to be completed this financial year. The company expects to report fiscal 2010 revenue of about $400 million.The entitlement offer closes on November 20 and a meeting of shareholders to approve the first and second placements will be held in early December.

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