Australia’s Bega Cheese to raise up to $250 mln from investors

Australian dairy company Bega Cheese announced a plan to raise up to $250 million from investors.

The $200 million institutional placement would be followed by an offer to existing shareholders from Australia and New Zealand to participate in a share purchase plan which would be capped at $50million.

Proceeds from the institutional placement and the share purchase plan will be used to reduce the debt from the company’s purchase of Saputo Dairy, an Australian dairy processing facility in Koroit, and to improve the company’s financial flexibility to take advantage of future growth opportunities in dairy and food.

Earlier this month, Bega Cheese became a substantial shareholder for Capilano Honey Limited, buying 255,951 shares in the company for about $5.38 million.