27 Mar 2013

Veritas will offer shares to part fund Mad Butcher purchase

1:37 pm on 27 March 2013

Veritas Investments says it will offer up to $25 million worth of shares to part fund the purchase of Mad Butcher.

The shell company is expected to register a prospectus this week.

Stock will be offered at $1.30 a share, which Veritas says is a 15% premium to the volume weighed average prices for the three-month period before the announcement of the acquisition, in late December.

The offer to retail investors will include a priority pool of up to $3 million worth of shares to existing Veritas shareholders.

Veritas says selected institutional investors are bidding for shares in a bookbuild process to assess demand.

The offer will open next month.

The purchase of the Mad Butcher chain remains subject to a shareholder meeting to be held in late April.