Metro Glass Seeks $24M Boost as Amari Eyes Majority Stake
Metro Performance Glass proposes a $15–24 million recapitalisation involving a discounted rights offer and a major placement to Amari Metals, who would become the controlling shareholder.
- 1.6-for-1 rights offer at $0.03 per share to raise $8.9 million
- Up to $15 million placement to Amari Metals Australia Pty Ltd
- Amari to hold 51% post-raise, becoming majority owner
- Proceeds aimed at debt reduction and securing new bank facility
- Independent report flags going concern risks but supports recapitalisation
Metro’s Capital Challenge
Metro Performance Glass Limited (ASX, MPP) has unveiled a significant recapitalisation plan designed to strengthen its balance sheet and secure its future. The company proposes a combined capital raise of between NZD 15 million and NZD 23.9 million through a pro-rata renounceable rights offer and a top-up placement to a new major shareholder, Amari Metals Australia Pty Ltd.
The Rights Offer and Placement Details
Shareholders will be invited to participate in a 1.6-for-1 rights offer priced at NZD 0.03 per share, representing a steep 41% discount to the last closing price before the announcement. This rights offer aims to raise approximately NZD 8.9 million. In tandem, Amari Metals will subscribe for shares to reach a 51% ownership stake, making it the controlling shareholder. The top-up placement to Amari could raise up to NZD 15 million, depending on shareholder uptake of the rights offer.
Strategic Implications and Shareholder Impact
The proceeds from this recapitalisation will primarily be used to reduce Metro’s outstanding debt and enable the company to secure a new three-year banking facility. However, the capital raise comes with dilution risks for existing shareholders, as Amari’s majority stake will significantly alter the ownership structure. Notably, two Metro directors, Simon Bennett and Pramod Khatri, have committed to participate in the rights offer, which requires shareholder approval due to their related-party status.
Independent Assessment and Board Endorsement
An independent report commissioned from Grant Samuel highlights material uncertainty regarding Metro’s ability to continue as a going concern without this recapitalisation. The report supports the proposed capital raise as necessary and fair, noting no viable alternatives currently exist to meet the company’s capital needs. The Metro board unanimously recommends shareholders approve the recapitalisation at the special meeting scheduled for 26 August 2025.
Looking Ahead
With the recapitalisation hinging on shareholder approval, Metro’s future financial stability and strategic direction will soon become clearer. The involvement of Amari Metals as a controlling shareholder introduces new dynamics that investors will watch closely, particularly regarding operational synergies and growth prospects in the glass manufacturing sector.
Bottom Line?
Metro’s recapitalisation is a pivotal step to secure its future, but shareholder approval and Amari’s majority control will reshape the company’s path forward.
Questions in the middle?
- Will shareholders approve the dilution and related-party participation at the upcoming meeting?
- How will Amari Metals influence Metro’s strategic direction as the new majority owner?
- What are the terms and conditions of the new three-year bank facility contingent on this raise?
