Did the market miss something? The Placement was oversubscribed...

Did the market miss something?

The Placement was oversubscribed at an issue price of A$5.25 per share ("Placement Price"), representing a 10.7% discount to Collins Foods' share price at market close on Wednesday, 22 March 2017. Approximately A$54.5 million is to be raised under the Placement through the issue of approximately 10.4 million shares.

The proceeds from the Placement will be used to partially fund the acquisition of 16 KFC restaurants located in the Netherlands from subsidiaries of Yum! Brands Inc (the "Netherlands Acquisition"). Completion is expected in July 2017 after satisfaction of the conditions precedent.

Collins Foods CEO Graham Maxwell said: "We are delighted with the strong level of support for the Placement shown by both Collins Foods' existing shareholders as well as a number of new investors. The Netherlands Acquisition accelerates our European strategy following the recent German acquisition, providing critical scale and, via the Development Agreement, an exciting opportunity for the Company to deliver significant growth in this market."