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Shares in bathroom products maker Methven shot up around 13 per cent as soon as a trading halt was lifted at noon today, on the back of news that it had commenced its purchase of a UK company.
Methven shares were up 30c, or 13 per cent, to $2.60 within a few minutes of the resumption of trading.
The trading halt on the company's shares was removed at noon today.
Methven said earlier this morning it has completed a $15 million institutional placement at a final price of $2.20 per share, to partially fund its purchase of privately owned British tap and showerware supplier Deva Tap Co.
Methven announced yesterday it was to buy Deva for an enterprise value of $59 million, with other funding from a $12.8m rights issue, $2.4m in shares to key Deva senior management and up to $30m of long term debt, including existing Deva borrowings.
Announcing the completion of the $15m institutional placement today, Methven said the share price had been raised above the initial range due to strong demand.
"At this level the book remained close to three times subscribed, and there has been material scaling of institutional bids," Methven said.
In total, 6.8m shares are to be issued, with the $2.20 price a 4.3 per cent discount to the $2.30 closing price on Wednesday.
A trading halt had been placed on Methven's shares before the market opened yesterday, ahead of the Deva announcement.
- NZPA
