CHESTERFIELD has arranged for a private placement of 163.2 million new shares at 33 cents each to raise $53.86 million, partly to repay loans.
The price represents a discount of 4.3 per cent to the share's closing price of 34.5 cents on Friday, when the arrangement was made.
The new shares represent 16.65 per cent of enlarged issued share capital or 19.98 per cent of the existing issued share capital.
Of the net proceeds of some $52 million, about half is intended to reduce company borrowings. The rest will be used as additional working capital.
''The directors of the company believe that the placing is in the best interest of the company and the shareholders as a whole as it enables the company to further strengthen its financial position and broaden its shareholder base,'' the company said.
On Thursday, on the eve of the placement, Chesterfield was among the best performing stocks, putting on 9.23 per cent to 35.5 cents.
