CUC to raise $53M with rights offer to shareholders

(CNS): Caribbean Utilities Company Ltd (CUC), Grand Cayman’s power provider, is hoping to raise US$51.3 million by offering its Class A ordinary shareholders the opportunity to buy additional shares. CUC said it intends to use the proceeds to finance alternative energy projects, ongoing additions and upgrades to its generation, transmission and distribution systems, and general corporate purposes.

In a press release, CUC said the offering will be made in the Cayman Islands and Canada. Class A ordinary shareholders have been issued one right for each share they hold. Every ten rights entitle shareholders to buy one Class A ordinary share from CUC for US$13.41 on or before 4:00pm Toronto time on 31 October.

There are currently 38,222,985 Class A Ordinary Shares issued and outstanding. If all shareholders subscribe to all the additional shares they are entitled to, CUC expects to raise approximately US$51.3 million.

In connection with the offering, CUC has entered into a stand-by purchase agreement with its parent company, Fortis Energy Caribbean, to purchase all of the Class A Ordinary Shares that are not otherwise subscribed for and purchased.

See full release on CUC’s website.