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Price too high: pub float sinks

Canberra Times logo Canberra Times 9/05/2014 Colin Kruger and Carolyn Cummins
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The $100 million pub float AG&E has been sunk with institutional investors shying from the asking price for the stock.

Sources told Fairfax Media that CIMB and Wilson HTM went back to AG&E to renegotiate the $1 IPO price but were forced to pull the float when the parties failed to agree.

The institutional book build was expected to conclude with the prospectus for retail investors expected to be lodged with ASIC.

The five pubs that were to be acquired from the $80 million raised in the IPO are now on the market.

The hotels are the Croydon Park Hotel, the Canley Heights Hotel, the Beverly Hills Hotel, the Wentworthville Hotel, and the Wiley Park Hotel.

To run the business the group had appointed the long time gaming executive Heather Scheibenstock - previously the general manager at both Star Casino and Jupiters Casino.

John Thomas is chief operating officer and David Shaw is chief financial officer and the non-executive chairman is Bill Brown.

It is not clear what will now happen to these executives given there is no business to run.

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