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Freedom Foods is planning to raise $200 million in capital to help secure acquisitions as part of the company’s expansion strategy, and increase capacity.

Freedom Foods chief executive Rory Macleod said in a statement to the ASX on Friday, that Freedom will offer existing shareholders three full paid shares for every 29 shares at $4.80 per new share.

The company will also offer an institutional placement at the same price, underwritten by Veritas Securities and UBS AG.

Both placements look to raise approximately $100 million each at an offer price that represents a 6.0 per cent discount on the company’s average share price over the last 30 days.

The targeted $200 million represents just under 20 per cent of Freedom Foods’ $996 million total market cap.

The company, which makes health-oriented food, snacks and a growing list of dairy products plans to invest in dairy manufacturing facilities in NSW, focusing on driving its specialty, top shelf dairy products towards key Asian and North American markets.

Mr McLeod said that the company’s rising brand recognition is meeting a growing consumer demand for dairy, plant and cereals, such as quinoa.

Freedom said its FY2018 net sales will now be at the higher end of its November guidance, at $360 million to $380 million.

“Our key brands Australia’s Own and Freedom Foods will be at the forefront of driving our returns from our innovation and manufacturing capabilities in Australia and international markets,” Mr MacLeod said.

Freedom shares were placed in a trading halt on Friday, at $4.94 and will resume trading on Tuesday morning next week.

All the new shares will be excluded from interim dividend of 2.25 cents, fully franked, announced on February 27.