Milford takes $3M bite of Burger Fuel
(BusinessDesk) - Burger Fuel Worldwide, which is expanding by licensing its burger chain concept in the Middle East, raised $2 million selling shares at a discount to funds run by Milford Asset Management.
The Auckland-based company will issue 1.6 million shares at $1.25 apiece to the Milford Active Growth Fund and the Milford Active Growth KiwiSaver Fund, it says in a statement today.
Shares jumped 7.1 percent to $1.50 on the NZX.
The Milford funds are also acquiring 800,000 shares at the same price from Mason Roberts Holdings, the investment vehicle of chief executive Josef Roberts and partner Chris Mason. As a result of the transactions the funds will own 4.6 percent of the company, it says.
Mason Roberts remains the biggest shareholder with 83%and other public shareholders own 12.4%.
Chairman Peter Brook says that even though the stock has traded as high as $1.41 recently, volumes were light and the price "represented good value to all existing shareholders." Grant Samuel advised the company on the transactions.
"This will allow the company to accelerate investment, giving it the ability to establish a stronger base for future earnings," Brook said.