Warrnambool Cheese and Butter is seeking to raise $142 million through a new share offer as it seeks to expand production capacity.
The company said the 3-for-8 pro-rata entitlement offer, which is not underwritten, will be priced at $6.75 per share, an 18.2 per cent discount on Thursday’s closing price of $8.25.
Warrnambool said all proceeds of the offer will be used to pay off debt that stood at $213.1 million on March 31, giving it greater flexibility to invest in the company.
