Skilled $75m placement at $5.20 a share 10:32, Tuesday, November 27, 2007
Sydney - Tuesday - November 27: (RWE Australian Business News) - Skilled Group Ltd (ASX:SKE) has raised $75m through a placement of 14.4m shares at $5.20 each to institutional investors. As a result of the placement, the company has increased its net profit guidance for the 2008 financial year to be in the range of $36m to $39m. It expects the trend of stronger results in the second half to continue, consistent with the previous year. Commenting on the placement, managing director and chief executive Mr Greg Hargrave said: "We are delighted with the positive response to the institutional placement and welcome Perpetual Investments and Paradice Investment Management Pty Ltd as shareholders who we believe will be long-term supporters of the company. "The support from these major institutions and the solid support we have received from our existing institutional shareholders is a strong confirmation of our strategy and our ability to deliver on it. "Over the past two years we have demonstrated our ability to effectively acquire and integrate companies while continuing to deliver double-digit organic growth. The additional capital raised will provide us with the flexibility to continue to fund growth opportunities, including acquisitions that will lead to increased shareholder value." Hedonsax, the major shareholder, has committed to taking an additional 2m ordinary shares at $5.20 each. Mr Hargrave has a beneficial interest in Hedonsax and shareholder approval for this placement will be sought at an extraordinary general meeting expected to be held in January. ENDS
SKE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
