Greyhound Seeks $4m In Rights Issue

The Age

Saturday March 16, 1996

The struggling national coach-line operator Greyhound Pioneer Australia has flagged a ``modest" one-for-two rights issue that it says will provide $4 million to augment the company's capital base.

Greyhound omitted an interim dividend after posting a December- half loss of $190,000, down from a net profit of $717,000 previously. Sales fell to $37 million from $41.18 million.

The managing director, Mr Stephen Jones, said the result was affected by costs associated with the restructuring of the company last year, as well as the costs associated with launching Greyhound's Super Express service and route expansion.

Greyhound acquired new coaches, opened new terminals and upgraded others, and improved its central reservations and computer systems. The initiatives were well received by shareholders.

He said the restructuring of the company had involved staff cuts, the elimination of certain infrastructure, sale of non- core properties, relocation to new head-office premises, and the completion of a rights issue.

The board was now considering ``the augmentation of the company's capital, with a modest rights issue to partially address the funding shortfall", Mr Jones said.

``The proposed rights issue would be one new share for each existing two shares held and we would seek to raise approximately $4 million," he said.

Greyhound shares last closed at 36 cents on 13 March.