AUS: E&T pushes Yarraman for funding proof
Evans & Tate has asked for further information about Yarraman Estate's bid to buy the Australian wine company.
Yarraman filed a third, improved bid for E&T yesterday (25 July), to rival a restructuring package proposed last month by ANZ Bank, E&T's main creditor, and Pendulum Investor Group.
The wine company's board has asked that the Australian unit of US-based Yarraman prove in writing its ability to fund the improved package.
As part of the proposed move, E&T would acquire the Australian arm of the US-based company for around A$17m (US$15.02m). The acquisition will be run through in the form of the issuance of E&T shares at A$0.11 each.
ANZ, which is owed around A$100m by E&T, will see the debt repaid with A$65m in cash and A$20m in the A$0.11 shares. A capital raising of A$20m will also take place, should the bid be accepted, through the issuance of 1-for-1.6 issue to all shareholders at A$0.05 per share. Around A$10m of this will then be used to pay off a further chunk of the ANZ debt.
Yarraman has arranged for GE to provide a debt finance package of A$72m to the merged entity, with A$53.5m of this going to ANZ and the remaining A$18.5m being held for a working capital facility.
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