Western Bulk Chartering equity issue gets underway
Kistefos has completed theĀ application process for the private placement of 5m new shares in Western Bulk Chartering (WBC), which will raise gross proceeds of NOK 167m ($20m), subject to share- and bondholders’ approval.
The shares will be sold at a price of NOK 33.40 ($4.00) per share in the placement, which is directed towards the largest shareholders in BulkĀ Invest (BI; formerly known as Western Bulk).
WBC plans toĀ conduct a share split of 1:2,000, which will reduce itsĀ totalĀ number of outstanding shares to 4m before the placement. After the equity sale is completed, WBC’s total number of shares will be 9m.
“We are very pleased to have concluded thisĀ fundraising with the support from previous BIĀ shareholders. The private placement provides WBC withĀ a significantly improved capital position and a strongĀ platform to continue to service our global customersĀ and grow our business,” Jens Ismar, CEO ofĀ WBC, said in a filing today.
WBC’s upcoming extraordinary general meeting will decide whether BI shareholders as of February 25 this year who did not participate in the private placement will be offeredĀ a subsequent repair offering worthĀ up to the NOK equivalentĀ of $5m (currently around NOK 41.5m). The shares would be sold at a price ofĀ NOK 33.40 each.
Kistefos is led by Christen Sveaas, who is chairman of Bulk Invest, which filed for bankruptcy in early March. Kistefos acquired WBC from Western Bulk in early February.
Most of WBC’s new capital is expected to be raised by the end of June, and Kistefos itself will contribute equity capital. The investment firm said previously it will ābackstopā a part of the equity issue by providing a $10m guarantee.
All the new shares to be issued have a par valueĀ of NOK 0.05.