* "We are delighted in the high level of interest in the offer from both existing and new institutional shareholders." |
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Tassal's managing director and Chief Executive Offcier, Mark Ryan.
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The company said the placement priced at A$3.85 per share was significantly oversubscribed. The price was 3.75 per cent below the close of market figure before the placement.
Tassal said teh sale means an issue of 17,463,781 new ordinary shares.
Subject to the receipt of final approval from ACCC, the proceeds from the sale will be used to fund the aquision of Superior Gold that was announced earlier this year.
Superior Gold currently supplies salmon, trout, mussels, herring, rollmops, caviar, bismarks and prawns to the retail and foodservice markets.
Superior Gold has been market leader in the packaged fish segment over the last five years with a market share rising from 41 per cent in 2002 to 52 per cent in 2007.
The remaining proceeds from the share placement will also reduce Tassal's debt position and help to fund organic growth stategies.
Merrill Lynch acted as the sole manager and underwriter to the placement, which was conducted through a bookbuild process.
Tassal's managing director and Chief Executive Offcier, Mark Ryan, said: "We are delighted in the high level of interest in the offer from both existing and new institutional shareholders and believe that the succesful executionis a strong endorsementof Tassal and our stated strategy."
Settlement of the new shares is expected on 14 January with quotation expected on 15 Janauary.
Tassal said it intends ot offer existing sharolders the opportunity to participate in a share purchase plan on completion of the acquisition of Superior Gold capped at a maximum of A$6 million.