Gunns inks $280m raising

Company News

Gunns Limited (ASX:GNS) has signed a term sheet with Kiwi billionaire Richard Chandler for a capital raising of $150 million, sending its share price soaring 60 per cent, or 7.5 cents, to 20 cents.

In a statement, the company says that if the rights issue is wholly subscribed for, it will raise $130 million, bringing the total raising to $280 million.

Chandler’s senior advisor Alan Kelly says he sees Gunns’ future as building a foundation for sustainable development and economic growth.

The Richard Chandler corporation has proposed to accelerate operations at the Bell Bay Pulp Mill.

Gunns booked a net loss of $355.5 million in the 2011 financial year.