Bega Cheese is launching a $160 million capital raising in order to have cash on hand so it's ready for yet more growth.
Bega, which in January spent $460 million on a suite of brands including Aussie icon Vegemite, said on Friday it will use the proceeds of the raising to improve financial flexibility to take advantage of future growth opportunities in dairy and food.
The company wants to raise about $122.5 million from an institutional placement, and another $37.5 million from a share purchase plan open to all existing shareholders.
"This capital raising gives us the financial strength and flexibility to grow our dairy and food businesses as part of our vision to be a great Australian food company," executive chairman Barry Irvin said.
The institutional placement offer is for 22.9 million shares priced at $5.35 each, which represents a 10.1 per cent discount to Thursday's closing price of $5.95.
The new shares under the share purchase plan will be priced at $5.25.
Bega, whose shares have been placed in a trading halt, also confirmed its full-year guidance for earnings before interest, tax, depreciation and amortisation of about $67.4 million.
Bega shares have risen by more than 40 per cent since the start of 2017.
