Australia's Kelsian Group falls most in about 7 months on discounted capital raise

Kelsian

16/03/2023 23:51

** Shares of Kelsian Group  KLS.AX  slump as much as 11.2%
to A$5.640 after resumption of trade, their biggest intraday pct
drop since Aug 25
    ** The transit operator on Wednesday announced an A$281
million ($187.09 million) equity raising to fund $325 million
acquisition of All Aboard America! Holdings Inc
    ** Expects deal to be upper single digit earnings per share
excluding amortisation accretive in pro forma CY22 before any
bonus adjustment
    ** Issue price of A$5.55 per new share for equity raising is
at a 11.4% discount to last close on March 13
    ** "Its a relatively appropriate size for a step-out
acquisition giving KLS a footprint in the U.S. market from which
it can grow" - E&P Financial
    ** Co had requested for a trading halt on March 14
    ** Shares touch their lowest since Feb 13, top loser on ASX
200
    ** KLS stock has fallen 11.6% this week so far, on track for
worst week since Aug 26
    ** Stock jumped 10.4% YTD as of last close 


($1 = 1.5020 Australian dollars)

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))