If they sold $250 mill worth of stock at $1.50 this equates to almost 167 million new shares. Current shres on issue are 198 million, which means the current dilution would equate to a SP drop to $1.90!!!
Is this for real?
---------------------------------------- Transfield Sells Shares at A$1.50, Below Earlier Price Range
By Sarah Thompson and Sarah Jones
Nov. 24 (Bloomberg) -- Transfield Services Ltd., an Australian provider of maintenance services to miners, raised A$250 million in a share sale to institutional investors, less than initially sought, and will use the money to pay debt.
The company sold shares at A$1.50, 57 percent less than the most recent market price and lower than an indicative range used to market the offering, according to a term sheet sent to clients and obtained by Bloomberg.
The company initially sought to raise A$265 million from institutional investors, including A$180 million through a rights offer. Transfield also said it planned to raise A$120 million through a rights offer to existing retail investors. The shares were initially marketed at between A$1.80 to A$2.25 apiece, the term sheet showed.
Shares in Transfield fell 24 percent to A$3.50 on Nov. 7 when they last traded, valuing the company at A$693 million. The company halted trading in its shares before the Australian stock exchange opened on Nov. 10.
Macquarie Group Ltd. and ABN Amro Holding NV managed the sale.
