Olam International

[Musicwhiz]

That's a crapload of money to be raised. I wonder if shareholders will welcome the (i) potential dilution and (ii) requirement to cough up cash to prevent even further dilution of their stake.

I won't like to be an Olam shareholder right now!

Singapore's Olam to raise S$740 mln via share placement

SINGAPORE, Jun 6 (Reuters) - Singapore commodities firm Olam International plans to raise S$740 million ($602 million) through a placement of new shares, according to a term sheet seen by Reuters on Monday.

Olam plans to sell 94.4 million shares at S$2.60 each through a placement to investors, representing a discount of 8.4 percent from the last closing price on June 3.

The company also plans to sell another 94.4 million worth of shares to Singapore state investor Temasek [TEM.UL] at S$2.60 apiece.

The Olam placement includes a preferential tranche of 97.29 million shares that will be sold to existing investors at S$2.56 a share on the basis of one new share for every 22 shares held.

JP Morgan, Credit Suisse, HSBC and Standard Chartered are the joint bookrunners for the deal.

Source: Reuters