US hedge fund Libra Advisors will take a $12 million stake in Rubicon [NZX: RBC] in a private placement to shore up the company's funding position and support its future commitments to forestry biotech firm ArborGen.
The New York-based investor will buy 29.3 million shares at 41.29 cents per share, the volume weighted average price over the last 10 trading days, Rubicon said in a statement. The deal will settle at the close of trading on Wednesday, giving Libra a 7.2 percent holding. The shares were unchanged at 40 cents, having dropped 4.8 percent on Friday, and have gained 5.6 percent this year.
"This is a very positive development for the company. Libra is a savvy investor, who clearly sees value in Rubicon moving forward," chairman David Kasnet said. "We are extremely pleased to have them coming onto our share register at this time, and we believe they will provide a supportive role in helping the Company achieve its key shareholder goals."
Rubicon holds a controlling 59 percent stake in wood mouldings maker Tenon and a 32 percent share of US-based seedlings biotech firm ArborGen.
Last August, it said it still plans to float ArborGen after an aborted initial public offer in 2011, though it has to weigh up the realisation of immediate value against what it could get in the future.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Business Week in Review with Grant Walker & Andrew Patterson
- Matthew Hooton on Labour party’s reaction to the budget 2016
- Rodney Hide says the attack by University of Auckland over overfishing is nonsense
- Do social bonds make sense? Tim Hunter tells Andrew Patterson it’s not just about the warm fuzzies
- Cameron Officer talks about the car of the week - Volkswagen California Ocean