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.
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Diluted
how about giving out some of those class b shares??
Ahh.
Reminds me of thr good ole days when GOVERNMENT ie locals opened the first power company.
Then the greedy sods soon privatized it and sold the initial shares to.. Themselves.
This just demonstrates that CUC have never held a credible internal business adoption strategy for energy transition. This is a tack-on greenwashing line item that will now cost their shareholders share dilution. $50mln is also 10 times less than what the CIG 2030 mission goal should be calling for. Shareholders beware.
Only read headline, why now? Is competition coming and now flapping…?
Only if the shares in the rights issue are issued at a discount to the current price (which they normally are) and you don’t take up your rights. My advice; take up your rights.
How can non-Class A shareholders get in on the racket?
Are my shares being diluted?
If you dont excercise the right, yeah. Fortis will buy any that are not excercised.
All about you..ask those you invested in.
Let’s see you all go down.
Not sure.
If you choose not to exercise your rights, yes, dilution by same ratio of exercised rights.
Well, they have been for the case of those buying them through their share purchase plan since those usually come from their treasury.