Freightways raises its $45m

Freightways says it has successfully completed a $45 million underwritten placement of 18.45 million ordinary shares announced early yesterday.

The shares were sold at $2.44, a 12 per cent discount to the $2.78 closing price on Monday.

Freightways, which operates in the express package, business mail and information management markets, said proceeds of the equity raising would be used to reduce debt and further strengthen the financial position of the company.

Eligible shareholders would also be offered further new ordinary shares through a share purchase plan to raise up to $5m.

A trading halt placed on Freightways shares yesterday was lifted about 8.30am.

- NZPA