Shares of Singapore's Olam surge after fund-raising plan
SINGAPORE Dec 4 (Reuters) - Shares of Olam International Ltd jumped more than eight percent after the commodities trader, which is battling short-seller Muddy Waters, announced an issue of bonds and warrants backed by state investor Temasek Holdings.
Olam is issuing a nominal $750 million of 6.75 percent five-year bonds at a price of 95 percent, raising $712.5 million.
The deal is to be offered pro rata to Olam shareholders and Temasek Holdings, which has a 16 percent stake, and said it would buy rights not taken up by other investors.
Olam shares rose as much as 8.6 percent to S$1.71, their highest level since Nov. 22.
"This is a swift and decisive move which will likely relieve debt pressure, but may come at a price of eroding minority shareholders' confidence in the longer-term," Maybank Kim Eng said. (Reporting by Eveline Danubrata; Editing by Edwina Gibbs)