Metcash (MTS) shares hit more than two-month highs after it bought the Timber & Hardware Group for $165 million. It was a positive sign for Metcash as it tries to build a viable rival to the mighty Bunnings.
The stock soared as much as 10% yesterday after coming out of a trading halt yesterday morning that saw the company raise $80 million to help finance the $165 million purchase of Home Hardware from Woolworths.
A total of $40 million shares were placed with big shareholders at 42 a share.
The shares ended up 6.3% at the close at $2.19, that’s a nice first up profit for the buyers of those share sin the placement.
