The West Australian reported that BlueScope Steel plans to sell AUD million in new shares at a 34%discount to raise money to strengthen the company's financial position by repaying debt.

BlueScope will raise the money in a fully underwritten four for five accelerated renounceable entitlement offer at an offer price of 40 cents per share, a 34%discount on the last trading price. Shares in the company closed at 61 cents on Monday before going into a trading halt on Tuesday.

Eligible shareholders will be able to buy four new shares for every five shares already held. BlueScope said there would be an institutional and retail investor component of the offer.

Mr Paul O'Malley CEO of BlueScope said the company's earnings were continuing to be hit by the high Australian dollar, low steel prices, high raw material costs and softer demand.

He said “The entitlement offer will result in a more appropriate capital structure for the company. Following the entitlement offer we will remain focused on further reducing the company's debt levels over time.”

(Sourced from thewest.com.au)