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PaperlinX to raise up to A$300 mln in share sale

Tue Sep 30, 2008 8:09pm EDT

Stocks

   

MELBOURNE, Oct 1 (Reuters) - PaperlinX Ltd (PPX.AX), Australia's top paper maker and trader, said on Wednesday it aims to raise up to A$300 million ($238 million) through an institutional and retail share offer.

PaperlinX flagged last week it was considering an equity raising to boost its balance sheet as it tries to sell some or all of its Australian manufacturing business, all part of a commitment to reduce its debt facility by A$150 million by May.

Chief Executive Tom Park said last month the Australian Paper business was unlikely to fetch its A$1.1 billion book value.

A key factor for those looking at the Australian Paper business is likely to be the performance of its Maryvale paper mill, where PaperlinX plans to complete a A$340 million upgrade by November. ($1=A$1.26) (Reporting by Sonali Paul)



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