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Business Bakery to reduce Trilogy holding

NZ NewswireNZ Newswire 15/06/2016 Jonathan Underhill

Business Bakery will reduce its holding in Trilogy International, taking advantage of a 326 per cent gain in the skincare and home fragrance company's shares in the past 12 months.

Trilogy's largest shareholder, whose owners include Trilogy chairman Geoff Ross, plans to raise $30 million by selling shares at $3.70 apiece, a 7.5 per cent discount to their closing price in Wednesday.

The sale would amount to 13.1 per cent of the company, which plans to raise $25 million at the same price via a placement and share purchase plan.

Business Bakery, which currently owns 48.7 per cent of Trilogy, would hold "at least 30 per cent" following the capital raising and completion of the purchase of a quarter stake in Chilean rosehip producer Forestal Casino, Trilogy said.

"In response to strong demand for Trilogy International shares by investors who have noted a lack of liquidity, The Business Bakery has decided to realise a portion of its investment," the company said.

Last month Trilogy reported that full-year profit more than doubled on soaring sales of its skincare and home fragrance products and the contribution from cosmetics and fragrance distributor CS Company. The shares closed at $4 on Wednesday having climbed from just 93 cents a year ago.

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