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re: tim ex div 10/8 Timbercorp set to grow with $80 million issue
Melbourne, 10 August 2004: Leading agribusiness investment manager, Timbercorp
Limited (ASX:TIM), today announced an $80 million reset preference share issue to public
and professional investors that will significantly enhance the company’s long-term growth
plans.
Following strong institutional demand, professional investors have subscribed for $50
million of the issue, including an amount of $20 million in oversubscriptions. The balance of
the issue, an amount of $30 million, will be offered through a priority offer to existing
ordinary and converting preference share holders and to the public. The priority and public
offer will be fully underwritten by Austock Corporate Finance Limited.
Chief Executive Officer Robert Hance said the capital raising would fast-track continued
growth in the company following an effective doubling of the business over the past three
years.
“We are working towards expanding our existing project offerings and introducing a number
of new large scale agribusiness projects over the next three years. The issue will help us
fund project capital expenditure to drive increasing project revenues and group earnings
over that period” he said.
“The reset preference share offer is also an attractive option for us because it diversifies the
company’s funding sources to include non-redeemable, long-term financing to further
strengthen Timbercorp’s balance sheet.”
A portion of the funds raised will also be used to fund a new woodchip receival, storage and
loading facility at the Albany port and an expansion of Timbercorp’s state of the art olive
processing facility on its olive grove at Boort, Victoria. Revenue from both the port facility
and olive processing facility will start increasing sharply from next year.
The public issue will open on 19 August 2004 and close on 20 September 2004, or at the
discretion of the Board of Directors. The Timbercorp reset preference shares are expected
to start trading on the ASX about 1 October 2004 with the first dividend payable on 31
March 2005.
Timbercorp reset preference shares (RPS) entitle holders to receive a preferred, noncumulative
dividend semi-annually in arrears, in preference to dividends paid on ordinary
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shares. Until the first reset date on 30 September 2009, the company will pay a non
cumulative, fully franked dividend of 6.75% per annum. Each RPS will have a face value of
$2.00.
A copy of the terms of issue of the reset preference shares will follow this announcement.
A prospectus providing full details of the reset preference share offer is expected to be
lodged with the Australian Securities and Investments Commission on Wednesday 11
August 2004 and copies will be available from the Timbercorp website at
www.timbercorp.com.au.
Austock Corporate Finance Limited has been engaged to underwrite the priority and public
offer of 15,000,000 reset preference shares, while professional investors have agreed to
apply for a further 25,000,000 reset preference shares.
The Offer is subject to the passing of the following resolutions by Shareholders at an
Extraordinary General Meeting to be held on Monday, 13 September 2004:
− a special resolution to amend the constitution of Timbercorp to allow for the issue
of the Timbercorp RPS; and
− an ordinary resolution to approve, for the purpose of ASX Listing Rule 7.1, the
issue of Timbercorp RPS.
Existing Timbercorp ordinary and converting preference shareholders holding shares at
5.00pm on the record date of 10 August 2004 (today) will each be entitled to a minimum of
$2,000 in reset preference shares, with a right to apply for a higher number of shares.
A proposed timetable for the issue is set out below:
Record Date – for priority
entitlement Tuesday, 10 August 2004
Prospectus date Wednesday, 11 August 2004
Public Offer Opening Date Thursday, 19 August 2004
Timbercorp EGM Monday, 13 September 2004
Public Offer Closing Date Monday, 20 September 2004
Allotment Monday, 27 September 2004
Despatch of holding statements Wednesday, 29 September 2004
Timbercorp RPS commence trading on ASX Friday, 1 October 2004
First Dividend Payment Date Thursday, 31 March 2005
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Dates may change
These dates are indicative only and are subject to change. Timbercorp has the right in its absolute discretion,
with the consent of the Underwriter, to close the Offer early, to extend the Closing Date for the Offer without
notice or withdraw the Offer at any time prior to the issue of the Timbercorp RPS. If the Closing Date of the
Offer is extended, the subsequent dates will also be extended accordingly. Investors are encouraged to
submit their Application Forms as soon as possible after the Offer opens.
Quotation
Timbercorp will apply to the ASX within seven days of the date of this Prospectus for the Timbercorp RPS to
be quoted on the ASX.