9th Oct 2014 09:47
LONDON (Alliance News) - New World Resources PLC Thursday said it had raised about EUR32 million by placing 1.36 billion shares related to its recent balance sheet restructuring, while the shares not taken up in its recent rights issue had also started trading after being taken up by the underwriters and noteholders.
The company completed its balance sheet restructuring on Tuesday, but still had to place a number of new A shares with some pre-restructuring noteholders. The new shares issued in the placing represent about 25.77% of its its share issue ahead of the placing.
The previous noteholders had the right to nominate two directors to New World Resources, and have nominated the former president of BHP Billiton PLC's iron ore division Ian Ashby and former Close Brothers Group PLC Chief Executive Colin Keogh, New World said. The pair will join the board as non-executive directors as long as the appointments are approved by shareholders.
The company's balance sheet restructuring, which took eight months to complete, left it with significantly reduced outstanding debt and debt servicing costs. As part of the restructuring it undertook a 19 for 1 rights issue, and got valid acceptances for about 75.1% of the shares offered. It wasn't able to secure subscribers for the remaining rump.
As no subscribers were procured during the rump placing following the rights issue, participating existing noteholders and the backstop providers took up the remaining 1.25 billion new A shares at the issue price, New World Resources said Thursday.
New World Resources shares were up 1.7% at 1.85 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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