CSG announces $40m equity raising

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CSG announces $40m equity raising

ASX-listed CSG has announced a $40 million equity raising attempt to ensure it maintains debt levels and funding in the wake of recent natural disasters and a court case.

It planned to raise $10 million from an institutional placement while a further $30 million will come from existing shareholders. 

Company secretary Kim Clark told CRN that new or existing instituional shareholders could elect to buy an unlimited amount of shares. 

Existing shareholders were eligible for a minimum of one new CSG share for $1.10 for every nine existing shares CSG shares as of 19 April.

The proceeds will be used to meet "upcoming contracted capital payments," the company said in a statement to the ASX. 

The integrator said it was impacted by a number of events in the third quarter which have impacted its operating cashflow. 

These included the Queensland floods, Christchurch earthquake and a court case with Fuji Xerox.

The company expected its full year net profit after tax to grow despite the recent natural disasters in Queensland and New Zealand.

CSG remained in a trading halt at the time of writing. 

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