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- Building services company Johns Lyng Group (JLG) enters back-to-back trading halts regarding a ‘material’ transaction and a capital raise
- While there aren’t many details released yet, JLG has disclosed the raise is in the form of an institutional placement and an entitlement offer
- This follows the extension of a contract with major insurer, Suncorp (SUN), to provide building insurance repairs around Australia
- JLG expects to remain in the trading halt until Monday, December 13, by which time further details on the raise are expected
- Company shares last traded at $7.14 on December 6
Johns Lyng Group (JLG) has entered consecutive trading halts regarding a ‘material’ transaction and a capital raise.
Specific details on the raise aren’t yet known but the building services company has disclosed the capital raise involves an institutional placement and a pro-rata accelerated non-renounceable entitlement offer.
Established in 1953, Johns Lyng Group is an integrated building services company that operates in Australia and internationally. It claims its core business is built on its ability to rebuild and restore contents and properties after damage by insured events such as weather, impact and fire events.
Last week, the company extended a contract with Suncorp (SUN), one of Australia’s largest insurers, to provide building insurance repairs in multiple states and territories.
The extension is for a three-year term but has a further one-year option.
CEO Scott Didier said the extension reflected the strengthened relationship between JLG and Suncorp.
“The extension of this arrangement is testament to not only the strength of our relationship with Suncorp but also our ability to provide consistent, market-leading services within the industry; something we’re incredibly proud of.”
The billion-dollar company expects to remain in the trading halt until Monday, December 13, by which time further details on the raise are expected.
Company shares last traded at $7.14 on December 6.
