November 4, 2009 / 10:33 PM / in 9 years

CORRECTED - CORRECTED-UPDATE 1-Superior Plus to raise C$45 mln to fund Griff

(Corrects paragraph 7 to show revenue fell 24 percent to C$441.3 million, not 38 percent to C$147.6 million)

* To sell 3.8 mln common shares at C$12/shr

* To use proceeds to buy certain assets of Griffith Energy

* Says deal to add about C$0.03/shr to operating cash flow

* Q3 operating cash flow fell 42 pct to C$0.22/shr

Nov 4 (Reuters) - Canada’s Superior Plus Corp (SPB.TO) said it will raise C$45 million through an equity financing in order to partially finance the acquisition of assets from Griffith Energy Services Inc.

Earlier in the day, the company, whose services span from energy to specialty chemicals, said it agreed to acquire certain assets of Griffith Energy for about $76 million in cash.

The company said the transaction is expected to add about 3 Canadian cents to its adjusted operating cash flow per share based on 2010 projections.

To fund the deal, Superior Plus will sell 3.8 million common shares at C$12 a share to a group of underwriters co-led by National Bank Financial, TD Securities Inc and Scotia Capital Inc on a bought deal basis.

Separately, Superior Plus said operating cash flow for the third quarter fell 42 percent hurt by weakness in fuel, specialty chemicals and construction products distribution businesses.

Adjusted operating cash flow fell to C$19.3 million, or 22 Canadian cents a share, from C$33.5 million, or 38 Canadian cents a share, a year earlier.

Revenue fell about 24 percent to C$441.3, retail propane sales volumes, combined with a lower average retail selling price.

For 2009, Superior Plus said it now expects adjusted operating cash flow of C$1.90 to C$2.05 a share.

Superior Plus shares, which have gained more than 5 percent in the past month, closed at C$12.35 Wednesday on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya and Isheeta Sanghi in Bangalore; Editing by Anil D’Silva)

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