Woolworths take-up means no banks for Country Road

02 Aug 2012

Australian clothing company Country Road has launched a A$92m ($96.8m) rights issue to fund the acquisition of local rival Witchery Group. But it has decided not to mandate banks for the deal, mainly because it can rely on a big take-up from its majority shareholder.

Country Road is offering investors rights shares on a one-for-two basis for A$2.66 each. But its major shareholder Woolworths International has agreed to take up its 88% entitlement, leaving A$81m of the deal already covered.

Country Road now has just A$11m of demand to find from other investors, and ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial