Moa looks to raise funds

Moa Group is planning to raise up to $3 million to help pay for its acquisition of Savor Group, if the deal is approved by shareholders.

The brewery announced last December that it was looking at purchasing the suite of Auckland restaurants, which it claimed would add $3.6 million in earnings in the first full financial year.

The conditional agreement would see Moa Group acquire Savor Group for $13 million – 60 percent in cash and 40 percent in shares – although the maximum purchase price could be as high as $21.4 million.

A $5.5 million bank facility has now been conditionally secured with BNZ. The deal is planned to be funded by a mix of bank debt, new equity and the rights issue.

Moa has had a hard time since going public. The company posted a loss of $2.1 million in the last financial year and a $1.2 million loss in the six months to September. Moa said that the deal with Savor would triple its revenue and give the company sustainable profitability.