Peet is looking to raise $80 million via an underwritten institutional placement.
Peet also intends to undertake a Share Purchase Plan, allowing existing retail shareholders to participate in the equity raising at the same price as the institutional placement.
Peet’s managing director Warwick Hemsley said the equity raising will further strengthen Peet’s balance sheet and enable it to accelerate growth of its funds management business, as well as grow new profit streams by funding diversified development projects and capitalise on larger acquisition opportunities.
Peet confirms its earnings guidance of 21.2 cents per share, reflecting growth of 15% for the 2007 financial year – exceeding Peet’s stated underlying long-term target growth of 10% per annum.
Dividends for the 2007 financial year are expected to be 19.1 cents per share, consistent with earlier guidance.
Peet expects that the institutional placement will be completed overnight with confirmation expected to be made before trading commences on Tuesday November 14, 2006.
The placement is being underwritten by UBS AG, Australia Branch.
By Nelson Yap
