AMA Group (ASX: AMA) started trading back on ASX after the company released the pending capital raising announcement. In today’s market release, the company has announced the investors’ substantial interest in AMA Holdings, subsequent to which AMA's stock price shot up by 12.5% or $0.115 to last trade at $1.035 on 9 November 2018.
Automotive service provider AMA Group intends to raise funds through placement of 10 million shares to meet the working capital needs and support the company’s acquisition strategy. The issue price for placement has been fixed at 95.32 cents per share.
A key point to note is the investor traction gained by the company as a number of leading Australian long-term investors, Myer Family Investments, AustralianSuper, and Colinton Capital Partners, have separately agreed with the relevant counterparties to acquire the entire share placement as well as a total of approximately 62 million shares from Ray Malone, Andrew Hopkins and a number of members of the AMA Group panel repair business management team.
It has been informed that AustralianSuper will become the largest shareholder of AMA Group by acquiring up to 9.67% of the total issued capital of AMA. Whereas Colinton Capital Partners and Myer Family Investments are expected to acquire up to 2.23% and 1.49%, respectively.
AMA Group Chairman, Ray Malone stated that the company is proud to have its plans and vision for the business receive the endorsement of investors of the calibre of AustralianSuper, Myer Family Investments and Colinton Capital Partners.
Besides capital raising, the company has also announced some key structural changes in the Board and management team of the company with the motive of becoming ASX200 index component.
AMA’s Chairman Ray Malone intends to take transition from the role of Executive Chairman to a Non-Executive Director of the company over the next nine months. However, it has been informed that Mr. Malone will continue to make active participation in company’s principal operations areas, especially the development of the new procurement business where he is leading several value capable initiatives.
Ray Malone stated that in particular, (Mr. Malone) have been helping build the procurement business which has the potential to create significant value for shareholders. (Mr. Malone) will be doing his utmost to help Andrew Hopkins succeed in his new role of Group Chief Executive Officer.”
Furthermore, the group has appointed a new Deputy Chairman to the Board. It includes the joining of Senior Partner of Colinton Capital Partners Simon Moore in the AMA Board of Directors to act as Deputy Chairman.
Commenting on Mr. Moore appointment, Chair Ray Malone said that the addition of Simon Moore to the Board of Directors will add both corporate finance skills and the strategic execution discipline to AMA’s Board.
The group expects to settle the share placement and the secondary sales on Monday, 26 November 2018.
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