Shares of Bega Cheese Limited (ASX: BGA) moved up 3.8%, after announcing the offer to eligible shareholders to acquire additional Bega Cheese shares under a Share Purchase Plan Offer (SPP Offer). Under the SPP, each eligible Bega Cheese shareholder (as at 7.00pm on 22 June 2017) will have an opportunity to subscribe for up to A$15,000 of new Bega Cheese shares, subject to scale back, without incurring brokerage or transaction costs. Eligible Bega Cheese shareholders are holders of fully paid ordinary shares in Bega Cheese and whose address on the share register is in Australia or New Zealand (provided that such shareholder is not in the United States or acting for the account or benefit of a person in the United States). The proceeds from the SPP will be used to improve Bega Cheese’s financial flexibility to take advantage of future growth opportunities in dairy and food. The SPP Offer aims to raise approximately A$37.5 million and is not underwritten. Further, the company may determine to raise a higher amount or decide to scale back applications under the SPP Offer at its absolute discretion.
The stock has moved up 51.0% over the past six months (as on July 03, 2017), led by robust results for H1FY17, and currently trading at elevated levels.