Re: Downer EDI owned 5% by ERG recent placement at 78xc (10/12/2001. -- ERG

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Subject: Re: Downer EDI owned 5% by ERG recent placement at 78xc (10/12/2001.

Author:
Steve Bonkers.

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Date Posted: 14:14:01 12/10/01 Mon
In reply to: Steve Bonkers. 's message, "Downer EDI owned 5% by ERG recent placement at 78xc (10/12/2001." on 13:10:57 12/10/01 Mon

Message ERG's 5% stake in Downer EDI.(placement at 78c)10/12/2001 (read 34 times; 0 replies)
Conference ASX
Posted Tue 11-Dec-01 08:36

Member bonkers
Email Address withheld
Member Since 26-Mar-01
No. Connections 187
No. Posts 88

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"Downer EDI shares are tightly held in the market with 44% of the company
being owned by Hong Kong-based Paul T-ITC, another 12.4% owned by Hutchison
Whampoa, 5% by ERG Limited (ERG) and 3.3% by CSR Limited. "

Downer EDI (DOW) shares
were placed in a trading halt this morning at the request of the company
following reports of a combined placement and capital raising. Since
merging with the EDI Group in March 2001, Downer has become one of
Australia�s largest engineering companies.

UBS Warburg is believed to be currently doing the
rounds of Australian institutions, seeking buyers for a total of 88
million shares at 78c each to raise $68.6 million. The price represents an
8.2% discount to Friday�s 85c closing price.

Newswire reports suggest that 40 million shares is new
equity being issued by Downer, while CSR Limited (CSR) is also selling
down its 3.3% stake of 44 million shares.

A spokesman said that Downer intends to use proceeds
from equity raising will initially be used to pay down debt, strengthen
balance sheet to enable company to fund growth prospects and associated
working capital requirements. Net debt to net debt plus equity ratio will
fall to 39% from 45%.

�Downer expects to make an announcement on Wednesday
regarding a capital raising which will be used for the expansion of the
business,� a Downer EDI spokesman said.

Downer EDI shares
are tightly held in the market with 44% of the company being owned by Hong
Kong-based Paul T-ITC, another 12.4% owned by Hutchison Whampoa, 5% by ERG
Limited (ERG) and 3.3% by CSR Limited.

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End of (sub)thread.

Reply by wrongway to bonkers (10 of 11)

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