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SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Capital/Financing Update 2019
Oct 3, 2019
65884_rns_2019-10-03_7db50c25-71e2-4dd3-ae5a-7cade30effaf.pdf
Capital/Financing Update
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DRP shortfall placement
4 October 2019
ASX & media announcement ASX code: SXE
Southern Cross Electrical Engineering Limited (ASX: SXE) (“SCEE”) today announces the underwriting of its Dividend Reinvestment Plan (“DRP”) shortfall (“the DRP Shortfall Offer” or “the Offer”).
As announced to the ASX on 28 August 2019, SCEE has put in place a Dividend Reinvestment Plan with respect to a $7.0m dividend ($0.03 per share) for the year ended 30 June 2019.
Shareholders representing 8.7% of the $7.0m have elected to participate in the DRP, leaving a DRP shortfall of $6.4m. The DRP shortfall is now fully underwritten. Euroz Securities Limited and Moelis Australia are Joint Lead Managers and Underwriters to the Offer.
The Offer is being made to institutional and sophisticated investors pursuant to a waiver to ASX Listing Rule 7.1, such that the Offer does not reduce SCEE’s 15% placement capacity.
The Offer Price is calculated as a 5.0% discount to the VWAP for the 5 days from Friday 27 September 2019 to Thursday 3 October 2019 inclusive, being $0.5462 per share, which is the same price at which shares under the DRP will be issued.
Total proceeds of $7.0m from the DRP and DRP Shortfall Offer will be used to preserve the Company’s strong balance sheet, to ensure financial flexibility and fund potential acquisitions.
Contact
SCEE Perth Office 41 Macedonia Street Naval Base WA 6165 T: +61 8 9236 8300
Graeme Dunn CEO & Managing Director E: [email protected]
Colin Harper Company Secretary E: [email protected]
Southern Cross Electrical Engineering Limited
ABN 92 009 307 046