Dairy product processor Bega Cheese Ltd (ASX: BGA) shares are down 0.2% to $6.91 at the time of writing after yesterday’s announcement of a share purchase plan giving investors the opportunity to acquire up to $15,000 of new shares.
Bega completed a placement of new fully paid ordinary shares to institutional and professional shareholders on September 11, raising around $200 million.
Bega hopes to raise $50 million from the share purchase plan, but with the share price now lower than the $7.10 offer price this could be an issue.
Bega plans to use the funds to reduce debt following the Koroit Facility acquisition and prepare for future growth opportunities.
Elsewhere in the food sector Freedom Foods Group Ltd (ASX: FNP) shares are on the rise after hitting an all-time high earlier this month with investors seemingly pleased with Freedom’s FY18 results report.
Retail Food Group Limited (ASX: RFG) shares are up 1% to 48c per share at the time of writing, but have plummeted in the last 12 months, after 123 store closures and net debt eclipsing its market capitalisation.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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