AMA Group Sky-Rocketed After Gaining New Major Investors

  • Nov 09, 2018 AEDT
  • Team Kalkine
AMA Group Sky-Rocketed After Gaining New Major Investors

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.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK