RNA Holdings, through 51.47 per cent-owned subsidiary Peakhurst, is to raise $138 million by selling 100 million shares in Simsen Metals (Holdings) to the Cheung family and independent shareholders.
The net proceeds, amounting to $136 million, will be used to reduce Peakhurst's shareholders' loans.
Peakhurst, which controls 365.62 million shares, or a 29.99 per cent stake, in Simsen, will first place through CEF Capital 35 million shares with independent shareholders at $1.38 per share.
It will place another 65 million shares with Simsen managing director Haywood Cheung at the same price.
After the placements, Peakhurst's interest in Simsen will be reduced to 21.78 per cent while Haywood Cheung's family will see its interests increase from 16.40 to 21.73 per cent.
