After selling their IPMG business into the PMP (now Ovato) merger, members of the Hannan family are increasing their stake as the company seeks to raise funds for its new press expansion.
The company is seeking $15.5 million to strengthen its balance sheet, accelerate work on its Warwick Farm site (pictured), and pay for a new 80pp manroland Lithoman due this year.
Existing Ovato shareholders - including the Hannans with 40.3 per cent - were offered one new share for every 2.3 they currently hold, with the Hannan family taking up shares not bought by institutional investors.
Ovato had reported a steep drop in revenue, with sales expected to be down about 12 per cent because of the election, and consequences of the capacity-sharing agreement between News Corp and Nine Entertainment (formerly Fairfax Media). Shares - which were placed in a trading halt for the offer - have fallen dramatically since the merger.
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