Tutt Bryant Group Limited (ASX: TBG) announces a 2 for 5 renounceable rights issue to raise gross proceeds of approximately $49.7 million. The Rights Issue is fully underwritten by ABN AMRO Morgans Corporate Ltd.

Funds raised from the issue will be used to retire debt associated with the recent acquisition of North Sheridan Pty Ltd in December 2006 and the acquisition of Muswellbrook Cranes and to provide additional working capital.

The issue price of $1.34 per share, which represents a discount of approximately 18.8% to the closing market price of shares on ASX of $1.65 on 16 February 2007, the last day the shares traded before the date of the Prospectus. It also represents a discount of approximately 19.1% to the 5 day volume weighted average price up to and including 16 February 2007.

New shares issued under the rights issue will rank pari passu with existing shares and are entitled to any final dividends declared for the period ending 31 March 2007.

Tutt Bryant Groups' largest shareholder, Tat Hong International Pte Ltd, has committed to accept the offer in respect of its full entitlement (but will not participate in the top up facility), thereby retaining its current 70% shareholding in the Company.

The Directors have also confirmed it is their intention to accept the rights issue in respect of their full entitlements.

Tutt Bryant Group announced on 3 November 2006 that it expected to generate between $10 million to $11 million profit after tax for the year ending 31 March 2007. That expectation remains unchanged and excludes contributions from the acquisition of North Sheridan Pty Ltd (effective from 1 December 2006) and Muswellbrook Cranes (effective from 15 February 2007). Earnings contributions from the two acquisitions are expected to be earnings per share accretive for the year ending 31 March 2008.

The rights trading period is from 21 February 2007 to 12 March 2007. The record date to determine entitlement to the new shares is 27 February 2007. The offer will close on 5.00pm Sydney time 19 March 2007, with the new shares expected to be allotted on 27 March 2007 and commence normal settlement trading on 28 March 2007.

The Prospectus for the Rights Issue has been lodged with ASIC and ASX and is available on this site, to access click here.