Seven finishes part one of equity raising
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SYDNEY, July 18 AAP
July 18 2012, 8:03PM
Seven West Media says there has been strong demand for the institutional component of its $440 million equity raising.
The television, magazine and newspaper group said that eligible institutional investors took up 91 per cent of the new shares available under the offer, raising $259 million.
Those who took part in the institutional entitlement offer, which was completed on Wednesday, included Seven West's largest shareholder, which holds a 33 per cent interest.
The institutional offer is the first stage of the equity raising, which will be used to pay down debt.
Seven West said the bookbuild clearing price of 10 cents per entitlement would be added to the total paid of $1.32 by the successful participants in the institutional shortfall bookbuild.
The retail, or small shareholder, entitlement offer opens on July 23 at $1.32 a share and will close on August 8.
The retail offer is expected to raise $181 million, including proceeds from Seven West's 11.8 cent shareholder, private equity group KKR.
Seven West shares, which have been in a trading halt since Monday, having last traded at $1.62, are expected to resume trading on the Australian Securities Exchange from the opening of the market on July 19.
Seven on Monday confirmed plans for a much-anticipated capital raising, saying the money would be used to reduce its $1.875 billion worth of debt but not to make acquisitions.
Chief executive Don Voelte said the capital raising was needed because the wider advertising market was subdued and likely to remain so in the near term.