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In November National Hire (ASX Code: NHR) had a share issue to raise $111.9 million to fund the acquisition of Cat Rentals and Allight Holdings. It also made a placement of $40 million to institutions at a share price of $0.35.
In the announcement made on November 1st, NHR said that it would return to the market to riase a further $5million through a share purchase plan (SPP) once the acquisitions were completed.
The company has a Shareholders Meeting on December 9th in order to seek approval for the transaction.
We (Tim the Red Menace and myself) think that the SPP will be formalised some time after December 9th. The most likely price for the SPP is at or near the placement price for institutions ($0.35c); the last share price for NHR was $0.46.
There is a slim possibility that the SPP is deemed to have a record date of November 1st - or that it will be deemed to close on the date it's announced. As such, it would be prudent to be on the register relatively soon just in case; this can be achieved by acquiring one share (by, for example, buying 500 shares and then selling 499 shares a tick higher).
The likely outcome of this SPP - if it comes to fruition as Red Menace assumes it will, is a premium of at least 20% to the issue price for the SPP.
