Article from the Age...I'm getting concerned and wonder what the senior finance management staff have been doing given their remuneration levels,etc...this is certainly not all financial crisis driven..
Transfield seeks $300m in third placement bid • Mark Hawthorne • November 28, 2008 • TRANSFIELD Services is having a third crack at trying to raise $300 million of much-needed capital after two previous share placements failed. In its latest placement to institutional investors this month, the mining and engineering industry services company is offering shares at just $1.25 each — a 64 per cent discount to the last traded share price of $3.50. Joint lead managers Macquarie Bank and ABN Amro are now trying too raise between $150 million and $210 million via the book-build. The company has been suspended since the close of trade on November 7 — when Transfield's share price plummeted 24%, from $4.60 to $3.50. Previous attempted raisings by Transfield Services this month have offered shares at $1.80 and then at $1.50, but both offers failed to attract investors' interest. The company will also try to raise a further $100 million via a retail entitlement offer. Transfield also announced a series of contract wins and extensions totalling $300 million, in an effort to lure reluctant investors. The company has won a five-year, $170 million contract to maintain the electrical distribution network for Jemena Electricity Network and United Energy Distribution in Victoria. The contract will start on January 1. Sydney Water has also granted the company a contract extension worth up to $70 million. Recently Transfield Services' joint venture, Flint Transfield Services, won a new two-year contract with Shell Canada valued at $C50 million ($A62.7 million).
TSE Price at posting:
$2.38 Sentiment: LT Sell Disclosure: Not Held
