Freightways Announces IPO Intent

The Board of Freightways Limited (“Freightways”) is pleased to announce that, together with Freightways’ largest shareholder, ABN AMRO Capital (Belgium) N.V. (“AACB”), it intends to proceed with an initial public offer (“Offer”) of Freightways’ ordinary shares (“Shares”) and a listing of Freightways’ Shares on the NZSX.

While the final terms of the Offer have yet to be determined, it is currently proposed that the Offer will have the following terms:

  • A majority of Freightways’ existing Shares will be offered for sale by AACB to retail investors in New Zealand and institutional investors in New Zealand and overseas.
  • Freightways will also issue up to $17.5 million of new Shares, the proceeds of which will be used to assist with the redemption of the preference shares issued by its wholly-owned subsidiary Freightways Express Limited (“FEL”). The redemption of these preference shares has previously been announced.
  • FEL preference shareholders will have the right to exchange a portion of their preference shareholdings for Freightways’ Shares and the ability to subscribe on a preferential basis for further Shares. The new Shares of up to $17.5 million mentioned above will be made available for this exchange offer.
  • A public pool of at least $20 million of Shares will be available. If the public pool is over subscribed and scaling occurs, FEL preference shareholders who have taken part in the exchange offer, and employees, contractors and directors of Freightways and its subsidiaries will receive an allocation preference over members of the public.

ABN AMRO Rothschild and First NZ Capital have been appointed as Joint Lead Managers to the Offer.

The pricing of the Offer and therefore the total amount to be raised will be determined during the Offer period by Freightways’ directors and by AACB following a bookbuild process.

Freightways expects to open the Offer on or about Monday 1 September 2003. The offer to FEL preference shareholders to exchange part of their holding for Shares, as well as the offer for public pool applications and the offer to institutional investors and NZX firms, is scheduled to close on Friday 12 September 2003. The scheduled closing date for applications under firm allocations is Friday 26 September 2003.

AACB and associated interests will retain approximately 20% of the Shares in Freightways.

For further information contact:

Managing Director
Freightways Limited
Ph: (09) 571 9670
Fax: (09) 571 9671