Daily news - 28 May

Golden Agri unveils $311m rights issue
Golden Agri-Resources plans to raise $311 million through a 17-for-100 rights issue at an issue price of 18 cents apiece. Investors will also receive two free warrants for every five rights shares. The warrants, which have a three-year maturity date, can be exercised at maturity at 54 cents per share and at a conversion ratio of one warrant to one share. Assuming that all the warrants are exercised, the company stands to raise another $381 million. The move follows guidance from management some two weeks ago that it was in talks with bankers on a rights issue, though no details were confirmed then. The offer price represents a 60 per cent discount to the closing price of 45 cents on the day prior to the lunchtime announcement. The company's net asset value stood at 46 US cents as at March 31. Shares of Golden-Agri dropped as much as 7.78 per cent yesterday and ended down 5.56 per cent at 42.5 cents.

Source: Kim Eng