GP Batteries to raise $26.1m from 1-for-2 rights issue

MAINBOARD-listed GP Batteries International is undertaking a rights issue to raise up to $26.1 million to repay bank borrowings and bolster its working capital.

It announced yesterday that the proposed issue of 54.9 million new shares will be at 48.6 cents per rights share, on the basis of one rights share for every two existing shares held.

Some 50 to 80 per cent of the net proceeds will be used to repay bank borrowings and 20 to 50 per cent for working capital. "The rights issue will enable the company to strengthen its financial position and enhance its capital base. It will also facilitate the company's investment in automation, brand building and distribution network in the near term," GP Batteries said.