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News 186 views last update:6 Aug 2012

A$190m share placement for ABB Grain

Australian grain giant ABB Grain Ltd has raised $A190 million (€118 million) from a placement of shares and will use the money to fund a new malt house and container packing facility near Sydney and for three projects in New Zealand.

ABB placed 20.5 million shares with institutional investors following a book build yesterday. The placement was completed at a price of $A9.30 (€5.77) per share.

"We have a pipeline of existing opportunities that this capital raising will support, and there are some very exciting opportunities ahead for our company," managing director Michael Iwaniw said.

In New Zealand, which is an importer of grain, ABB is looking to invest $A24 million (€14.9m) in feed mill and storage facilities in South Auckland, $A10 million (€6.2m) in storage facilities in Tauranga and Taranaki and $A11 million (€6.83m) on acquiring New Zealand Grain and Seed, maize drying and marketing.

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