Bellamy’s up after first phase of raising

Bellamy's MilkShares in Bellamy’s have lifted as the infant formula supplier resumed trading after completing the first phase of a $60.4 million capital raising.

Bellamy’s shares were at $6.15 at 1110 AEDT on Thursday, up from $5.76 when the company entered a two-day trading halt to conduct the institutional component of the raising.

Bellamy’s said on Thursday that it had raised $14.3 million from institutional investors, with a take-up rate of about 96 per cent for the offer of five new shares for every 38 already held.

The retail component of the capital raising is set to open next Tuesday. Bellamy’s aims to raise a total of $60.4 million, partly to help fund the acquisition of a canning facility that the company hopes will help improve margins and satisfy Chinese regulatory demands.

Bellamy’s will pay $28.5 million to acquire a 90 per cent stake in a new entity that will hold the issued capital of Camperdown Powder at Braeside in Victoria. Proceeds of the capital raising also will go to a $27.5 million one-off payment to dairy processor Fonterra, which manufactures a range of baby nutritional powders for Bellamy’s, in relation to a revised supply agreement.

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